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Monetary policy of the RBI: The status quo is probably slim Modi wins over supporters who fear fiscal populism.
Following a disappointing election result for Prime Minister Narendra Modi, the Reserve Bank of India’s Monetary Policy Committee (RBI) is expected to maintain the current level of interest rates. This decision comes amid worries about fiscal populism.
As of today, it is anticipated that the Reserve Bank of India would maintain the benchmark rate at 6.5% for the eighth meeting in a row. Only in the third or fourth quarter of the fiscal year 25 is the RBI expected to start reducing interest rates, according to market experts. It will be extremely important to attend the MPC meeting in June in order to gain insights into the views of the RBI Governor regarding inflation and the future trajectory of rate cuts.
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