RBI may reduce policy rate in fourth quarter of 2024: Oxford Economics.
[ad_1]
Ever since crude oil has become expensive due to the Ukraine War, the Reserve Bank has been continuously trying to stop the fire of inflation. In this effort, the Reserve Bank (RBI) has been continuously increasing interest rates since May last year. In the last one year, the Reserve Bank has increased the repo rate by 2.5 percent, in such a situation, the rates of home and car loans have reached double digits. Everyone is asking when these rates will come down. So here is the answer. The latest report by Oxford Economics has predicted that the Reserve Bank of India (RBI) may cut the policy rate in the fourth quarter of this year.
likely to cut in the fourth quarter of 2023
The global forecasting company said that there are several factors that could lead the central bank to make its stance more accommodative. Oxford Economics said inflation is already moderating and expectations for consumer inflation are coming down. The forecasting firm said that we are updating our view for India and the first interest rate cut by the Reserve Bank could be in the fourth quarter of 2023. RBI may reduce policy rate in fourth quarter of 2024: Oxford Economics.
Things can improve after Diwali
Oxford Economics said that due to mixed factors, the Reserve Bank may change its stance and become accommodative on the policy front. It said the Monetary Policy Committee (MPC) would first look at whether inflation is stabilizing in the middle of its target. After that she will change her attitude. We believe this will happen before the end of the year.RBI may reduce policy rate in fourth quarter of 2024: Oxford Economics.
Strength seen in economic signals
Oxford Economics said that economic indicators like PMI (Purchasing Manager Index) data, GST collections show that activity in India is still strong. It is noteworthy that the Reserve Bank of India has got the target of keeping the retail inflation in the range of four percent (two percent up or down). In April, the Reserve Bank surprised everyone by keeping the repo rate at 6.5 percent.RBI may reduce policy rate in fourth quarter of 2024: Oxford Economics.
[ad_2]
