According to Kotak Mahindra Bank’s chief economist, Upasna Bhardwaj, “The MPC, on expected lines, maintained status quo on rates and stances. While low core inflation provides comfort, the uncertainty of food inflation remains a worry.
Further, the higher US yields, higher oil prices, and other commodities, along with a possible delay in the Fed’s rate easing cycle, will keep the MPC wary. Accordingly, we do not see much scope for any rate easing until Q2 FY25. The earliest possibility of rate easing can emerge in Q3 FY25.”
“The monetary policy stance announced today reflects that the RBI is evenly balancing the two divergent objectives of growth and inflation,” stated Anu Aggarwal, President and Head Corporate Banking, Kotak Mahindra Bank. “It seems a case of full commitment to growth with an even higher commitment to inflation targets. I hope we will see sustained growth and softened inflation,” she added.
