9, Feb 2023
RBI Monetary Policy reaction quote | FundsIndia

Mr. Arun Kumar, VP and Head of Research, FundsIndia

“Today’s rate hikes were in line with market expectations. We may be close to peak policy rates driven by fall in domestic inflation in recent months. The current repo rate at 6.50% is comfortably above RBI’s inflation expectation of 5.3% in FY24. There are early signs of US inflation easing and slowing pace of rate hikes by the US FED. Overall, we expect RBI to go for a long pause in rate hikes from hereon. Future policy actions will be guided by the evolving domestic inflation / growth dynamics and the US Fed rate hike trajectory.”

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