05 Jun 2023, 12:41
The Reserve Bank of India’s Monetary Policy Committee (MPC) could/should decide to pause interest rate hikes when it meets later this week, as per eminent economists. The consensus on the street is that the RBI Governor Shaktikanta Das-led panel will keep the repo rate unchanged at 6.5% thanks to cooler inflation. The primary reason for this belief is that the retail inflation (based on consumer price index, or CPI), came in significantly lower at 4.7% in April this year, down from 5.66% in March. This is comfortably below the central bank’s upper tolerance limit of 6%.