Economists back RBI rate pause amid growth, inflation

Leading economists have welcomed the Reserve Bank of India’s (RBI) decision to keep the policy repo rate unchanged while maintaining a neutral stance, saying the move reflects prudence amid firm growth, evolving inflation dynamics and an impending overhaul of key macroeconomic data series.

- TBG NETWORK

Dipti Deshpande, Principal Economist at Crisil, said the Monetary Policy Committee’s (MPC) decision was in line with expectations and underscored a cautious wait-and-watch approach. She noted that the MPC is factoring in a likely rise in inflation in the first half of the next fiscal year even as growth remains strong. Upcoming revisions to the consumer price index (CPI) and gross domestic product (GDP) series, following changes in methodology and base year, also warrant caution, she added.