A Reuters poll of 70 economists suggests the Reserve Bank of India will keep the repo rate unchanged at 5.25% during its February 6 meeting. With inflation moderating but growth risks persisting, the central bank is expected to maintain stability while monitoring global and domestic economic trends.
The RBI is likely to prioritize stability over aggressive moves, as inflation has eased but remains a concern. Holding the repo rate steady allows policymakers to balance growth needs with price control, especially amid global uncertainties and volatile commodity markets.
Economists’ Consensus
Out of 70 economists surveyed, 59 expect no change in the repo rate. This consensus reflects confidence that the RBI will continue its cautious stance, waiting for clearer signals before considering any rate adjustments in the coming quarters.
Economic Context
India’s economy has shown resilience, supported by strong domestic demand and government spending. However, external risks such as global slowdown, oil price fluctuations, and geopolitical tensions remain factors influencing monetary policy decisions.
Key Highlights
RBI repo rate expected to remain at 5.25%
59 of 70 economists predict no change
Inflation moderating but still under watch
Focus on balancing growth and price stability
Global uncertainties weigh on policy outlook
Conclusion
The RBI’s anticipated decision to hold rates steady underscores its cautious approach in navigating inflation and growth challenges. By maintaining stability, the central bank aims to safeguard India’s economic momentum while preparing for potential global headwinds.
Sources: Reuters, Economic Times, Mint