business

RBI likely to hold rates again | After GDP surprise, will RBI revise growth forecast higher?

RBI’s MPC is expected to maintain status quo on key rates with fifth consecutive pause when it shares the outcome of the MPC meeting on December 8. The RBI may continue to defend the wicket given softening crude prices, weakening Indian rupee and easing long term US yields. The benchmark policy repo rate is currently 6.50 percent with stance of “withdrawal of accommodation”. The MPC kept the policy rates on hold for the fourth consecutive time in its last monetary policy meeting. In latest released numbers, India’s GDP growth surprised positively at 7.6 percent YoY Q2FY24, beating the RBI’s projection by 110 bps for the quarter. It was backed by strong growth in manufacturing sector in Q2, making India the fastest growing large economy in the world. Is there a strong case for the central bank to revise its growth estimates higher? Catch thia chat between Moneycontrol’s Nandita Khemka and CNBC-TV18’s Executive Editor Latha Venkatesh for more on what to expect.

first published: Dec 7, 2023 01:07 pm