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Pause now, lower later: Repo rate cuts may start by yr-end
Business Standard
|April 11, 2023
Analysts say RBI's projection on GDP growth optimistic
Higher for longer' may be the narrative in the developed .markets, but interest rates might not stay high for very long in India, with a section of the market expecting rate cuts to begin this year.
The six-member Monetary Policy Committee of Reserve Bank of India (RBI) decided to keep interest rates unchanged at 6.5 per cent in the April review-after hiking the policy repo rate in six previous meetings.
RBI Governor Shaktikanta Das emphasised that the pause was only for the April policy and that the central bank was ready to act if the situation demanded. "The RBI decision to pause has effectively punctured the debate of 'higher for longer' so that we eventually lead to 'lower for later/longer"," said Soumya Kanti Ghosh, group chief economic advisor of State Bank of India.
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