RBI Monetary Policy reaction quote | FundsIndia
Mr. Arun Kumar, VP and Head of Research, FundsIndia
“Today’s rate hikes were in line with market expectations. We may be close to peak policy rates driven by a fall in domestic inflation in recent months. The current repo rate at 6.50% is comfortably above RBI’s inflation expectation of 5.3% in FY24. There are early signs of US inflation easing and a slowing pace of rate hikes by the US FED. Overall, we expect RBI to go for a long pause in rate hikes from hereon. Future policy actions will be guided by the evolving domestic inflation/growth dynamics and the US Fed rate hike trajectory.”