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Below the perspective on RBI MPC announcement Mr. Nish Bhatt, Founder & CEO, Millwood Kane International

“The RBI keeping rates on hold is a prudent step as inflation is still within the targetted range. The key pain point within the retail inflation is due to the high food and vegetable prices which is transitory. The RBI's move to reduce system liquidity, hinting at rate tightening, or keeping rates elevated for a higher duration than earlier expected is a cause of concern.

Going forward, the expectation is that the central bank will keep rates at current levels barring any inflation shocks. A rate easing cycle is likely only from H2CY24. A slowdown in the West, and an oil price spike may prove to the negative surprises.”

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