RBI Policy Preview – Status Quo on Policy Rate Expected

• We expect that the MPC will maintain the current policy rate and stance in October policy meeting.
• Inflationary risks have not fully abated, specifically concerns around food inflation continue to linger.
• Although economic growth has been healthy, there are some early signs of softness.
• The RBI is expected to remain nimble and flexible in its liquidity management ensuring money market interest rates evolve in an orderly manner.
• If food inflation moderates, we could see a shallow rate cut of 50 bps in the upcoming policy meetings in this fiscal year.

MPC_Expectation_Oct_2024