Central Banks
Economists See India’s First Rate Cut in 2024 for Durable Growth
- RBI policymakers will meet next week and a hold is likely
- India’s inflation showing signs of moderating this year
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Economists see India’s central bank holding interest rates this year before cutting 25 basis points in the first quarter of next year as inflation moderates and the economy stays resilient, according to the latest Bloomberg survey results.
The benchmark repo rate is currently at 6.5% and the estimate for a quarter-point cut in January-March 2024 compares with a previous projection of a 50 basis point reduction. The rates could be lowered again in the following quarter, bringing the levels to 6%.