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Below the Perspective on MPC Announcement by Mr. Nish Bhatt, Founder & CEO, Millwood Kane International

“The Reserve Bank of India (RBI) retained the key lending rate, repo, at 6.5% marking it the sixth consecutive policy review of no rate action. There was no change in stance of ‘withdrawal of accommodation’, indicating that the RBI is not yet ready to lower the guard against the retail inflation till it aligns with the committed target of 4 percent in a timely and sustainable manner. The CPI for FY24 is projected at 5.4%, while its likely to be at 4.5% in FY25. While, RBI has pegged real GDP growth for FY25 at 7%.

As the expectation is that headline inflation will moderate in the coming months, and there are concerns around continued high systemic liquidity deficit, while money markets continue to remain elevated and moderation happening in global inflationary pressure from last year’s high, we may likely see some rate cuts actions by RBI in the latter half of CY24"

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