Reseve Bank of India to keep rates on hold

Economists anticipate that India's central bank will maintain interest rates at its upcoming review due to strong economic growth and easing inflation. The Reserve Bank of India is likely to keep rates steady for the seventh consecutive meeting, with all 56 economists in a recent poll predicting no change in the repo rate of 6.50%. Most experts foresee this stance being maintained until July. The central bank last changed rates in February 2023, when the policy rate was hiked to 6.5%. "We think the RBI will have to consider the balance of risks between over tightening (given the 'not-too-hot-nor-too-cold' state of the economy) and maintaining monetary policy conditions for achieving reasonably good real GDP growth of at least 7.0%," Barclays economists wrote, referring to the proverbial "Goldilocks" ideal state of stable economic growth. As India heads into a general election this month, the economy is growing faster than expected amid signs prices are trending lower though food inflation remains a risk.