Time to pause? RBI may keep rates unchanged at MPC meet
The RBI cut rates in Dec after the MPC placed greater weight on inflation slipping below the lower bound of the flexible inflation targeting framework. With inflation now expected to move higher, including under the new base-year series to be released from Feb 12, economists see limited scope for further easing. Growth is also expected to slow and settle in the 6.7-7% range in FY27, close to the Economic Survey’s estimate of potential growth at 7%.
The RBI cut rates in Dec after the MPC placed greater weight on inflation slipping below the lower bound of the flexible inflation targeting framework. With inflation now expected to move higher, including under the new base-year series to be released from Feb 12, economists see limited scope for further easing. Growth is also expected to slow and settle in the 6.7-7% range in FY27, close to the Economic Survey’s estimate of potential growth at 7%.
