The Reserve Bank of India (RBI) commenced its three-day Monetary Policy Committee (MPC) meeting on Wednesday, April 3. Amidst prevailing global headwinds and shifting domestic dynamics, the central bank's deliberations are closely watched as stakeholders anticipate decisions on the country's short-term lending rate.
Headed by RBI Governor Shaktikanta Das, the six-member panel is set to address key concerns, with a predominant focus on inflation control amidst subsiding worries over economic growth. The policy stance, is dubbed as a 'withdrawal of accommodation'.
Since April 2023, the RBI has maintained the short-term lending rates at a constant 6.5 percent over six consecutive bi-monthly policy meetings.
The last instance of interest rate adjustment occurred in February 2023, as part of measures aimed at tempering escalating inflationary pressures.
Market analysts widely anticipate a status quo in the upcoming decision, attributing it to a cautiously optimistic approach amid potential risks, particularly concerning food inflation to influence the Consumer Price Index (CPI) or retail inflation.
SBI posits that the rate cut cycle is likely to be shallow, with the first cut anticipated in Q3FY25, mirroring actions undertaken by advanced economy central banks.
The announcement of the MPC's decision by Das on Friday, April 5, awaits with bated breath.
Follow us
