Today, on April 5, the Reserve Bank of India (RBI) Governor Shaktikanta Das is set to announce the first monetary policy of the financial year 2024-25. The RBI's Monetary Policy Committee (MPC) meeting, responsible for setting rates, started on April 3 and concludes today. It's widely anticipated that the RBI will maintain the key policy repo rate at 6.5%, unchanged for the seventh time in a row. Governor Das and the six-member MPC will closely monitor global factors affecting India's GDP growth and inflation. Investors are particularly interested in any hints about future interest rate cuts.
Swati Saxena, from 4 Thoughts Finance, expressed optimism about the RBI's approach, expecting a steady interest rate environment to encourage market investment and improve liquidity. Looking forward, there's hope for rate cuts from June onwards to stimulate credit demand and lower interest rates, fostering a positive investor sentiment.
As markets opened today, both the Sensex and Nifty 50 showed a slight dip, indicating cautious trading ahead of the RBI's policy announcement. The Indian rupee also opened flat against the US dollar.
Analysts anticipate the RBI's stance to transition cautiously, aiming for a balanced approach amidst global economic uncertainties. While no significant changes are expected in the upcoming policy, markets are closely watching for cues regarding GDP growth, inflation projections, and potential rate cuts, especially in comparison to the Federal Reserve's decisions.
Given the Indian economy's strength and inflation hovering above the 4% target, the RBI is likely to prioritize stability over immediate rate cuts. However, the evolving economic landscape both globally and domestically will play a crucial role in shaping the RBI's future monetary policies. Investors and analysts await Governor Das's speech for insights into the RBI's strategy moving forward.
RBI Expected to Maintain Interest Rates: Economists Predict 7th Consecutive Steady Repo Rate
RBI's Policy Panel Begins Talks on Monetary Measures; Decision Due Friday
