CosmicTaco

RBI Likely to Maintain Status Quo on Interest Rates

CosmicTaco · 2024-10-07T08:15:27.922117+05:30

- The Reserve Bank of India (RBI) is expected to keep interest rates unchanged due to recent declines in inflation and escalating tensions in West Asia. - The repo rate is likely to remain at 6.50%, marking the 10th consecutive bi-monthly statement with no change. - Despite easing retail inflation, a potential rise in September may prevent the RBI from reducing interest rates. - Geopolitical conflict in West Asia and its impact on global commodity prices is another factor influencing the decision. - Analysts suggest the RBI's tolerance of surplus liquidity in the banking system indicates a willingness to accept slightly looser financial conditions while keeping the benchmark policy rate unchanged. Source: [Economic Times](https://economictimes.indiatimes.com/news/economy/policy/et-poll-rbi-may-hit-pause-button-on-interest-rates-again/articleshow/113992323.cms)

The Reserve Bank of India (RBI) is expected to keep interest rates unchanged due to recent declines in inflation and escalating tensions in West Asia.
The repo rate is likely to remain at 6.50%, marking the 10th consecutive bi-monthly statement with no change.
Despite easing retail inflation, a potential rise in September may prevent the RBI from reducing interest rates.
Geopolitical conflict in West Asia and its impact on global commodity prices is another factor influencing the decision.
Analysts suggest the RBI's tolerance of surplus liquidity in the banking system indicates a willingness to accept slightly looser financial conditions while keeping the benchmark policy rate unchanged.

Source: Economic Times

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