By – Shri Madan Sabnavis, Chief Economist, Bank of Baroda on MPC Policy
RBI has shown inherent confidence in the economy in the midst of the tariff turmoil. While GDP growth has been lowered for the year to 6.5% inflation has also been moderated to 4%. Given the change in stance to accommodative which has been clarified as referring not to liquidity but future rate action we may expect another 25-50 bps cut through the year. A pause in June is possible as monsoon is gauged. We can expect repo at say 5.5% by March.
