MPC unlikely to surprise on rates and stance: Poll
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The Monetary Policy Committee (MPC) is unlikely to make any positive surprises on interest rates or policy stance during its upcoming meeting on April 3-5. The repo rate is expected to remain unchanged at 6.5% for the seventh consecutive time, and the stance of withdrawal of accommodation is likely to continue due to inflation staying above the RBI's comfort zone of 4%. Around 50% of economists expect rate cuts from the third quarter of the current fiscal year, while 25% expect rate cuts from the second quarter. The central bank is expected to retain its policy stance of withdrawal of accommodation to avoid signaling a rate cut too soon. The MPC has been focused on the withdrawal of accommodation since April 2022 to align inflation with its 4% target. The efforts have eased prices to some extent, but CPI inflation remains above the target. GDP growth has exceeded forecasts, with a growth rate of 8.4% in FY25. The earliest rate cut is expected in the October 2024 meeting, unless there is a negative surprise in growth in the intervening quarters. Market participants will also be watching the central bank's commentary on liquidity management, as the banking system liquidity has moved from deficit to surplus in the last two months.

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https://www.financialexpress.com/policy/economy-over-50-expect-rate-cuts-from-q3-mpc-unlikely-to-surprise-on-rates-and-stance-poll-3442182/