India’s Central Bank Moving Closer to Rate Cut
- RBI likely to keep rate unchanged, change stance to neutral
- Wednesday’s rate decision is first by new policy committee
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India’s new monetary policy committee may lay the ground for an interest rate cut on Wednesday as a wave of global easing kicks off and growth in the world’s fastest-expanding major economy moderates.
While most of the 35 economists in a Bloomberg survey expect the Reserve Bank of India’s six-member MPC to keep the repurchase rate unchanged at 6.5%, several predict a switch to a ‘neutral’ stance for the first time since June 2019 from its current hawkish view.