Perspective by Mr. Shishir Baijal, Chairman and Managing Director, Knight Frank India on the upcoming RBI Monetary Policy.
"In the upcoming MPC meeting, we expect the RBI to keep interest rates unchanged. Despite GDP growth slowing to a seven-quarter low in Q2 FY'25, high inflation is likely to remain a key concern, influenced by factors like rising food prices and a weakening rupee. The real estate sector too is showing signs of moderation as seen in slowing demand for home loans. Notably, while the RBI has kept repo rates unchanged for a while, the commercial banks have gradually increased their base lending rates, thus tightening borrowings.
While a rate cut is not expected, the RBI might shift its attention towards boosting economic growth. To address the current liquidity deficit in the banking system, the central bank could consider lowering the Cash Reserve Ratio (CRR). This step would help increase the money available for lending, ensuring sufficient credit flow to key sectors and supporting financial stability."
No comments:
Post a Comment