MUMBAI: RBI governor Shaktikanta Das cited robust growth in the economy, supported by an upturn in manufacturing and the investment cycle as reasons for keeping interest rates on hold.
The governor’s views during the monetary policy committee meeting held a fortnight ago were revealed in the minutes of the meeting, which were released by the RBI on Friday.
The RBI governor’s and other members’ comments are being seen as hawkish and have dashed expectations of a rate cut in 2024.
Shreya Sodhani, an economist with Barclays, said the MPC minutes showed that members who had been hawkish have dialled up their hawkishness a notch, advocating patience on inflation and uncertainties amid robust growth. “With the MPC seeing no urgency to cut rates, we doubt RBI will front-run the Fed in pivoting. We, therefore, now expect rate cuts from Q4 24,” she said.
The governor’s views during the monetary policy committee meeting held a fortnight ago were revealed in the minutes of the meeting, which were released by the RBI on Friday.
The RBI governor’s and other members’ comments are being seen as hawkish and have dashed expectations of a rate cut in 2024.
Shreya Sodhani, an economist with Barclays, said the MPC minutes showed that members who had been hawkish have dialled up their hawkishness a notch, advocating patience on inflation and uncertainties amid robust growth. “With the MPC seeing no urgency to cut rates, we doubt RBI will front-run the Fed in pivoting. We, therefore, now expect rate cuts from Q4 24,” she said.
