RBI Likely to Hold Interest Rates Amid Inflation Concerns: Shaktikanta Das' Big Announcement Today

Governor Shaktikanta Das is set to announce the RBI's next monetary policy amid expectations to maintain the benchmark interest rates at 6.5%. Despite global trends, experts believe India will stick to its current rate due to inflation concerns. Economic growth and housing market stability are key factors influencing this decision

In a highly anticipated announcement scheduled for Friday morning, Reserve Bank Governor Shaktikanta Das will unveil the latest monetary policy decision. Amid mounting expectations, the central bank is likely to maintain the benchmark interest rates at 6.5 per cent, a figure held steady since February 2023.

Experts argue that inflation remains a pressing concern, prompting the Reserve Bank of India (RBI) to diverge from other global financial authorities like the European Central Bank and Bank of Canada, which have begun reducing their rates. Governor Das will reveal the rates post deliberations conducted by the Monetary Policy Committee (MPC), which commenced its discussions on Wednesday.

Despite the elevated rate, experts highlight that the RBI's current stance is aligned with ongoing economic growth. This approach is also indicative of the steady progress in the housing market, crucial for India's macroeconomic stability. As per an SBI research report, future rate cuts, anticipated in the third quarter of the fiscal year, are expected to be gradual.

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