Monetary Policy Preview — Will RBI Acquiesce To Rate Cut Demands Or Stay Put? Systematix' Analysis

While many have been advocating rate easing cycle for several quarters, RBI failed to oblige, but this pressure has intensified following the recent budget announcement, adds the brokerage.

With the budget providing a tax rebate of Rs 1.0 trillion to the income taxpayers to resurrect demand, it is now the turn of the RBI to relent.

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Whether Reserve Bank of India submits to the mounting pressure for rate easing or not is an open question. But in the context of structural growth dampeners, counter-cyclical easing it will be futile

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Systematix Research Report

Ahead of monetary policy announcement, expectations are rife that RBI will embark upon interest rate easing-cycle following a two year long break from the post pandemic rate normalization cycle that saw 250 bp hike in the policy repo rate to 6.5%.

While many have been advocating rate easing cycle for several quarters, RBI failed to oblige. But this pressure has intensified following the recent budget announcement.

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Systematix India Economy -Monetary Policy Preview.pdf
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Also Read: RBI Monetary Policy Preview: Easing Inflation, GDP Growth Concerns Could Mean Rate Cut

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