RBI MPC meeting begins today: Rate pause may continue on GDP growth, inflation; Key indicators to watch
Also Read: RBI policy meet: SBI says there could be no rate cut before Q3FY25; here's why According to a majority of analysts and economists on D-Street, the RBI would keep its key repo rate unchanged at 6.50 per cent at the conclusion of the April 3-5 MPC meeting, continuing its stance of ‘withdrawal of accommodation’. However, the recent uptick in crude oil prices over geopolitical conflicts is likely to keep the MPC's focus on inflation and managing the impact of global headwinds, despite record-high economic growth in the previous quarter. "The MPC is unlikely to act on policy rates on April 5th.
Even though rate cuts can be expected this year, the time is not yet conducive for a rate cut. The growth momentum in the economy is strong and FY 24 is likely to register GDP growth of 7.6 per cent, much ahead of the initial estimates,'' said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Also Read: RBI likely to keep interest rates unchanged in upcoming April, June policy meetings: Report ‘’It is possible for India to achieve a growth rate of seven per cent in FY25. So, a rate cut is not warranted now. The April 5th policy announcement is unlikely to impact the market, given the current market mood and resilience.
The market is presently influenced by retail investor enthusiasm, the sustained flows into the market via mutual funds and fundamental support from good GDP growth and decent corporate earnings,'' added Dr. V K Vijayakumar. Most analysts argued on the timing of rate cuts by the RBI in 2024.
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