It has been recently declared that RBI is going to remain cautious about inflation. Yes, this is true. But the repo rate is unchanged at 6.5% in December 2023. This has been recently claimed by Barclays. India’s Quarter 3 GDP growth rate of 7.6% has now surpassed its expectations and also the projection. But on the other hand, there are some expectations that the RBI is going to maintain a stance on the repo rate this month. There is some upswing in the GDP numbers, still, the RBI monetary policy committee is going to keep the repo rate unchanged in December 2023. Check out this article till the end.
India’s GDP growth rate of 7.6% for the July to September quarter has now officially surpassed the expectations of the market with the projections that have been made by the RBI. The strong GDP numbers are going to deter the Reserve Bank of India (RBI) from the hawkish stance on the repo rate this month. It has been officially announced that the RBI Monetary Policy Committee is going to remain cautious to hold and also to keep the repo rate unchanged at a total of 6.5%. this has been officially announced by Barclays. Keep reading.
Barclays has also revealed that despite continuing its hawkish stance on the repo rate, the central bank is going to highlight the risks to inflation from the potential recurrence of the prices of food has given a big shock and also impacted inflation expectations even after cooling the core inflation. There a positive Q3FY24 GDP print numbers, and the Reserve Bank of India (RBI) is currently expecting to be less curious regarding the growth momentum. It has been said that the central bank might raise the annual growth forecast modestly but it is going to keep the inflation forecast unchanged.
Barclays has also said that the MOC is going to flag the moderation of monetary transmission. The repo rate has remained narrowed in the last few months. There are some expectations that the committee is going to maintain the monetary policy that has stated the withdrawal of accommodation even after the deficit liquidity conditions. He has also stated that they think that the bank is going to continue avoiding the relapse of the WACR before/around the repo rate because of the excess liquidity conditions which are going to imply, that it will continue to conduct the two-way operations as there is a need.