RBI is back at the centre stage as the six-member MPC will present the outcomes of the first bi-monthly monetary policy for FY25 on April 5. A poll of 45 economists conducted by GoodReturns.In showed that all of them are expecting a status quo from RBI on Friday, keeping the repo rate at a multi-year high of 6.5% and retaining stance at "withdrawal of accommodation". Market and economists both expect a rate cut and easing of policy from RBI in 2024, however, when that will happen still needs clarity. We have curated a possible timeframe of when RBI may cut the key repo rate. Shrutee Sarkar explains what is expected from the April meeting.
RBI, RBI policy, rbi rates, rbi repo rate, rbi monetary policy, monetary policy, money
RBI, RBI policy, rbi rates, rbi repo rate, rbi monetary policy, monetary policy, money
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00:00 All eyes are once again set on the Reserve Bank of India, who will be announcing the
00:05 first bimonthly monetary policy for FY25 tomorrow. The three-day meeting of the six-member MPC,
00:12 chaired by RBI Governor Shaktikanta Das, commenced on Wednesday, April 3. As per a poll of 45
00:19 economists conducted by Goodreturns.in, the central bank is expected to hold policy rates
00:25 and stands in the April meeting. A rate cut scenario is seen but later in the year. Coming
00:30 to rate cut expectations, a majority of these economists expect easing of the policy and
00:35 lowering of rates later in the year. The majority of them predict a 50 to 75 basis point rate cut
00:42 during August and October FY 2024. Nonetheless, the RBI policy report is seen between 5.75 to 6%
00:52 later this year. India's economy grew a stellar 8.4% in the fourth quarter of 2023, the fastest
00:59 among the major economies in the world. Inflation, which is still close to the upper band of the
01:05 central bank's 2 to 6% target, does not hint an immediate rate cut problem. RBI will take cues
01:12 from the US Federal Reserve, which is again expected to cut rates later this year. And RBI
01:17 will also consider inflation data in the coming months to take any decision about the rate cut.