Considering the drop in CPI inflation, the Monetary Policy Committee (MPC) is expected to continue holding rates steady. The latest inflation numbers were within the target range, as indicated in the previous policy. Moreover, IMD has indicated a normal monsoon, despite some concerns about El Nino, which will provide support to the RBI. With liquidity above 1.00 lac crores and WACR remaining around 6.25%, there are no immediate concerns.


 

Comments