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Below the Perspective on the RBI Monetary Policy Committee Meeting  by Mr. Shishir Baijal, Chairman and Managing Director, Knight Frank India

“As anticipated, the RBI has maintained its pause on interest rates. As the growth deceleration is not yet alarming, it provides the RBI with enough leeway to keep interest rates unchanged, focusing on controlling inflation and stabilising the currency. However, the tone of the central bank has shifted towards remaining cautious of growth slowdown as witnessed in downward revision of GDP projections for FY 25. The concerns of liquidity have been addressed through 50bps cut in the CRR, this should enable efficient credit flow to key sectors and support growth.  Currently, the central banks are grappling sharply depreciating INR, softening bond yields, persistent inflation, and a slowdown in growth. A rate cut could potentially be in the horizon as there are risks to consumption slowdown especially in the lower income groups”.

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