RBI monetary policy: Rates to be hiked, or cut? Here is what will weigh on MPC members' mind
A Reuters poll before the January-March growth data showed that 40 percent of nearly 60 respondents saw a rate hike on Wednesday, while nearly 70 percent of 44 projected that in August - a sharp contrast to an April survey seeing an increase only in 2019`s second half. But the robust growth data caused some to see a rate increase sooner rather than later for the repo rate, at its lowest since November 2010.
The seven-quarter high growth rate of 7.7 per cent in January-March 2018 and expectations of a normal monsoon has, however, reduced the clamour for a cut in the benchmark lending rate (repo) by the RBI. Image source: Reuters