RBI Keeps Key Lending Rate Steady, Experts Offer Insights
The Reserve Bank of India (RBI) has maintained its key lending rate at 6.5 per cent for the seventh consecutive time during its bi-monthly Monetary Policy Committee (MPC) meeting. The decision, announced by RBI Governor Shaktikanta Das, comes amidst discussions on the country's economic trajectory and inflationary pressures.
Experts weighed in on the RBI's decision and its implications for the economy. Deepak Ramaraju, Senior Fund Manager at Shriram AMC, highlighted the uncertainty surrounding the timing of a potential rate cut, citing upward pressures from food prices and crude oil shocks. Suman Chowdhury, Chief Economist and Head of Research at Acuité Ratings & Research, underscored the RBI's optimistic GDP growth forecast for FY25 while maintaining a relatively moderate outlook on domestic growth prospects.
Dr. Poonam Tandon, Chief Investment Officer at IndiaFirst Life Insurance, noted the MPC's focus on stabilising inflation and maintaining liquidity flexibility. Meanwhile, Santosh Meena, Head of Research at Swastika Investmart, pointed out the market's muted response to the RBI's decision, with attention shifting to global developments and potential pre-election market movements.
Raghvendra Nath, MD of Ladderup Wealth Management, emphasized the RBI's commitment to achieving its inflation target and fostering economic resilience. He highlighted the importance of monitoring global central bank announcements and inflation trends for future rate cut decisions.
The RBI's decision to maintain the status quo reflects its cautious approach to economic management amid evolving domestic and global dynamics. As the country navigates through various economic challenges, market participants will closely monitor central bank actions and economic indicators for cues on future policy directions.
