New Delhi New Delhi: The Reserve Bank of India (RBI) is set to announce the decision of its Monetary Policy Committee (MPC) meeting on October 9, with the central bank likely to maintain status quo on policy interest rates, industry experts said on Tuesday. There is a possibility and if food inflation eases further, a modest cut of 50 basis points is likely in the upcoming policy meetings this financial year. Dheeraj Relly, MD and CEO of HDFC Securities, said he does not expect the RBI to initiate its rate cut cycle, but is likely to adopt a neutral stance. “The MPC could keep repo rates steady at 6.50 per cent for the 10th consecutive time,” Reilly said. “While it is a close call, the RBI could very well introduce a no-change policy, while only changing its tone to the accommodative side.” ”
Despite inflation remaining below 4 per cent over the past two months, mainly due to a favorable base and some gradual deceleration in food prices, food inflation risks remain high. “We expect the MPC to maintain the current policy rate and stance. The comments of the newly inducted external members will be closely monitored to gauge future policy directions. Overall, we expect the Governor's stance to remain soft. “, which will lay the foundation for modest rate cuts in the coming months,” CareAge Ratings said in its report on Tuesday. As far as economic growth is concerned, overall growth remains healthy. Early signs of pick-up in private investment as well as improvement in private consumption demand bode well for the overall economy.
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