RBI May Cut Rate By 25 BPS, Focus On Growth: CareEdge

CareEdge Ratings anticipates the RBI's Monetary Policy Committee to maintain an accommodative stance with a likely 25-bps rate cut, focusing on supporting economic recovery amid easing inflation and global uncertainties.

- TBG NETWORK

The Monetary Policy Committee (MPC) is expected to maintain its focus on supporting the ongoing recovery in economic growth momentum, CareEdge Ratings said in a report.

The data intelligence firm added in the report that the rate-cut cycle that began in February is likely to continue, with a further 25-bps reduction in the repo rate expected at the June meeting, while retaining an "accommodative stance".

"The healthy growth momentum and the already easing money market rates may prompt the RBI to take incremental steps in policy easing, reducing the likelihood of a larger rate cut in this meeting," CareEdge said in the report.

The report further added, "We anticipate the policy statement to strike a dovish tone while remaining cautious about evolving global developments."