RATE CUT UNLIKELY AS GROWTH IS STRONG: REPORT

The SBI report also indicated that the RBI may not follow the interest rate developments in the United States. Instead, it is likely to take an independent approach based on the evolving domestic economic situation.

- TDG NETWORK

With India experiencing strong economic growth, the Reserve Bank of India (RBI) is unlikely to announce any rate cuts in its upcoming monetary policy meeting, says a report from the State Bank of India (SBI).

The report suggests that domestic economic conditions are the primary factor influencing the central bank's decisions. With India experiencing strong economic growth, potentially higher than its long-term potential output, the case for maintaining the current interest rates is strong, and the RBI may choose to pause rather than lower rates.

"Domestic conditions are paramount and with robust growth higher than potential output, case of pause exists" said the report.