Repo rate cut likely in Q3
For now, RBI will continue with the withdrawal of accommodation: SBI economist
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Chennai: The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) may cut Repo rate only in the third quarter of FY25 and not before, said a top economist in the State Bank of India (SBI).
In a research report, Soumya Kanti Ghosh, the Group Chief Economic Advisor, also said that the RBI will not change its stance and continue with the withdrawal of accommodation. The first meeting of the MPC for this fiscal will be held this week. The Repo rate is the rate at which the RBI lends to commercial banks. Currently, the rate is 6.5 per cent.
According to Ghosh, with moderate fuel prices, inflation is currently being driven by food price dynamics.
