InvestorQ : Do you see interest rates going down from current levels or going up from current levels?
NISHA Nayak made post

Do you see interest rates going down from current levels or going up from current levels?

Answer
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8 months ago


Interest rate cuts look difficult for now. It would take some doing for inflation to come down by 300 bps or more before the MPC would be willing to look at further rate cuts. That almost rules out rate cuts for two more policies in April and June. A good Rabi followed by a good Kharif this year could bring some genuine respite for inflation. Unless the CPI inflation goes up much further from here, the MPC is unlikely to change its stance from “accommodative”. The real trigger will have to come from global markets and a revival in global growth. One can expect rate cuts may be after 2 policies if the macro conditions permit. However, if the inflation were to go up sharply from these levels, the RBI may be compelled to hike rates. But that is an outside chance.