RBI, though wary, creating grounds to cut rates

RBI, though wary, creating grounds to cut rates; decision may get pushed to June 2024, says CRISIL After the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) announced to keep the repo rate steady for the sixth straight time at its review meeting on February 8, 2024, economists at CRISIL said the central bank could push the decision to cut rates at least to June 2024, if not later. “We believe slowing inflation despite food price hiccups, a smaller fiscal deficit and an imminent turn in the US Federal Reserve policy rates will create the ground for the MPC to start cutting rates. But the RBI is wary of doing so too early, or even changing its stance as inflation is not yet firmly under control,” said Dharmakirti Joshi, Chief Economist; Dipti Deshpande, Principal Economist; and Sharvari Rajadhyaksha, Economic Analyst, at CRISIL. We believe more clarity on the path of disinflation – shaped by food prices and the trend in crude oil prices given the tensions around the Red Sea — could push this decision at least to June 2024, if not later.. [Read more](/dHJpc3RyYW1iYWxkd2luODVAZ21haWwuY29t/aHR0cHMlM0ElMkYlMkZ3d3cuZmluYW5jaWFsZXhwcmVzcy5jb20lMkZwb2xpY3klMkZlY29ub215LXJiaS10aG91Z2gtd2FyeS1jcmVhdGluZy1ncm91bmRzLXRvLWN1dC1yYXRlcy1kZWNpc2lvbi1tYXktZ2V0LXB1c2hlZC10by1qdW5lLTIwMjQtc2F5cy1jcmlzaWwtMzM5MTU0NSUyRg==)  We respect your privacy. If you are not interested in receiving further emails, please Click [here](/dHJpc3RyYW1iYWxkd2luODVAZ21haWwuY29t)