RBI’s Next Move Too Close to Call

The Reserve Bank of India’s next policy move will be a “very close call” with economists split over whether the central bank will cut interest rates for the third time in four months when it meets on Tuesday.

Governor Raghuram Rajan has kept markets on their toes this year, with two off-cycle rate cuts in January and March totaling 50 basis points. The benchmark repo rate currently stands at 7.5 percent.

While the RBI prefers front-loading policy easing, recent inflation developments complicate things, said Devika Mehndiratta, senior economist, South Asia & ASEAN at ANZ.

CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.