We agree with consensus expectations that the MPC will keep policy unchanged at the conclusion of its meeting on Friday 5th April. Further ahead, we think the central bank will start cutting rates in Q3 once headline inflation reaches the RBI’s 4% long-term target and the economy cools a touch. And given the RBI’s penchant of moving quickly following a policy pivot, we expect slightly more rates cuts by the end of the year than the consensus is forecasting.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services