MPC unlikely to begin rate cuts now

As the inflation still remains stubborn, the rate setting body may not even tweak the stance

- BENN KOCHUVEEDAN

DESPITE the rising chorus within the monetary policy committee (MPC) for slashing the interest rates and also change the policy stance, nobody is expecting the Reserve Bank-led rate setting panel to tweak the policy rates or even the stance because of the still stubborn inflation.

If the MPC, which began its three-day customary pre-policy review meeting on Tuesday here, leaves the rates unchanged, this will be the ninth consecutive time it does so, after it raised the key repo rate by 35 bps to 6.5% in the February 2023 review.