RBI's rate setting committee likely to maintain status quo on policy rates

ANALYSTS and Mint Road observers expect the Reserve Bank-led rate setting panel (MPC), which began its first three-day meeting of the new fiscal here on Wednesday, to maintain status quo on policy rates given the still sticky inflation and the more-than-expected economic growth in the December quarter.

- BENN KOCHUVEEDAN

RBI will announce its policy move and stance Friday. The meeting comes against the backdrop of a stronger-thanexpected growth numbers (8.4% in Q3FY24) despite pressures in some sectors. The latest PMI reading shows manufacturing sector is red hot and is at a 16year high of 59.1% in March.

The MPC, which has increased the policy rates by 250 bps to 6.5% from the pandemic driven easing to 4%, since May 2022, has been maintaining status quo since February 2023 when it had last hiked rates.

Headline inflation though has been trending down since the past few months and got printed in at 5.1% in February and March.