Finance & Economy | News & Insights

Monetary Policy Expectation – September 2023

Published: October 3, 2023

RBI’s monetary policy committee (MPC) will meet for the upcoming bi-monthly policy review to gauze the macroeconomic environment and decide on the monetary policy rate and stance. The decision will be announced on 6th October. CareEdge has published a report titled ‘RBI’s Policy Preview: MPC to Maintain Pause’.


  • Even though Q1 GDP growth remained strong, economic headwinds have intensified since then with higher crude oil prices and an erratic monsoon.
  • Despite the persistent rise in inflation, primarily driven by the volatility in food prices, there are initial signs of a slowdown in food inflation. Meanwhile, core inflation remains relatively stable, with some easing observed in August.
  • Liquidity conditions have tightened and borrowing costs have remained elevated since the last policy.
  • The RBI is likely to prioritize supporting economic growth, especially during the festive season, while remaining cautious about inflation.
  • We anticipate that the RBI will keep its policy rates unchanged with a unanimous decision while adhering to its stance of ‘withdrawal of accommodation.’
  • We do not anticipate any further rate hikes by the RBI in this fiscal year.


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