RBI MPC Meet Today: Will the Central Bank Cut Rates?
Mumbai: The Reserve Bank of India’s Monetary Policy Committee (MPC), led by Governor Sanjay Malhotra, is set to announce its repo rate decision today. Markets are watching closely to see if the RBI will maintain the current 5.5% rate or deliver another cut, weighing low inflation, global uncertainties, and recent fiscal measures like GST rationalisation and changes in income tax slabs.
A Bloomberg survey shows 24 of 38 economists expect rates to remain unchanged, while 14 predict a 25-basis-point reduction. Inflation is near the lower end of the RBI’s 2–6% target band, with August CPI at 2.7% and FY26 projections around 2.6–2.8%, offering some room for easing.
Growth indicators are mixed: Q1 FY26 GDP rose 7.8%, driven by government spending and rural demand, but weak private investment and urban consumption may limit further momentum. Analysts suggest the RBI may prefer a pause today while keeping the option of future cuts open.
External factors, including trade tensions and rupee depreciation, also influence the decision. Experts expect the RBI to hold rates but signal a dovish stance, leaving space for potential easing later in the year if conditions warrant.
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