Quote on RBI MPC Policy by Piyush Baranwal, Senior Fund Manager - WhiteOak Capital MF
Below the Quote on RBI MPC Policy by Piyush Baranwal, Senior Fund Manager - WhiteOak Capital MF
At first glance, today’s MPC decision to hold rates and stick with a neutral stance might look like more of the same, just as we saw in the last couple of meetings. But much like a cricket match where the scoreboard doesn't always capture the shifting momentum on the field, today's policy includes some subtle but important changes. RBI Governor Mr. Malhotra pointed out a sharp moderation in inflation in recent months, and in projections for the quarters ahead—even after considering an unfavorable base. At the same time, he flagged growth risks coming from global trade uncertainties. With the US Fed already cutting rates in September and likely to continue doing so, the RBI has some space to follow, but is watching to see how earlier monetary easing and recent government moves on GST play out. Interestingly, two MPC members even supported an ‘accommodative’ stance despite voting for pause, which backs our expectation of one or two more rate cuts in the months ahead—quite possibly starting with the December policy.
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