RBI Expected to Maintain Status Quo on Interest Rates Amid Inflation Concerns

The Reserve Bank of India (RBI) is anticipated to keep the key interest rate at 6.5% this Thursday, influenced by persistent inflation and US Federal Reserve policies. The Monetary Policy Committee, led by Governor Shaktikanta Das, anticipates no immediate rate cuts due to stable economic growth and elevated inflation levels.

The Reserve Bank of India (RBI) is expected to maintain the key interest rate at 6.5% this Thursday, based on expert opinions. The central bank plans to review more macroeconomic data before making any rate cuts.

The US Federal Reserve's decision to hold its interest rate steady, with indications of future easing, is also a factor. The RBI has maintained its rate since February 2023 and will continue to monitor US monetary policies closely.

The RBI's Monetary Policy Committee (MPC), led by Governor Shaktikanta Das, is scheduled to meet from August 6 to 8, with the decision announcement on August 8. Experts, including economists from Bank of Baroda and ICRA, suggest that current high inflation and economic stability will likely lead to a continued status quo.

(With inputs from agencies.)