RBI Monetary Policy Preview - Status Quo On Policy Rate Expected: CareEdge Analysis

The rating agency expects the governor to have a dovish tone, laying the groundwork for a shallow rate cut in the coming months.

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CareEdge Research Report

The Reserve Bank of India’s Monetary Policy Committee, reconstituted with new external members, is set to meet this week. We anticipate that the MPC will maintain the current policy rate and stance.

Inflationary risks have not fully abated, specifically concerns around food inflation continue to linger. Although economic growth has been healthy, there are some early signs of softness.

The commentaries from the newly inducted external members will be closely monitored to gauge future policy directions. Overall, we expect the governor to have a dovish tone, laying the groundwork for a shallow rate cut in the coming months.

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CareEdge MPC_Expectation_Oct_2024.pdf
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Also Read: Monetary Policy: RBI Keeps Repo Rate Unchanged At 6.5%; Check GDP And CPI Inflation Forecast

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