InvestorQ : So you expect a rate cut in this RBI policy during the week?
Dhwani Mehta made post

So you expect a rate cut in this RBI policy during the week?

Answer
user profile image
diksha shah answered.
1 month ago


It looks like there could be another rate cut but we have to wait for the outcome of the RBI Monetary Policy Committee (MPC) meeting. The MPC meet commences on 04 August and concludes on 06 August, culminating in monetary policy announcement. You may recollect that RBI has cut rates by 115 bps post COVID-19 of which 72-85 bps has been transmitted to borrowers, which is an all time record.

This fabulous transmission could be a big incentive for the RBI to cut rates anywhere between 25 bps and 50 bps to give a boost to industrial growth, which is showing signs of picking up based on core sector data. The only worry is inflation which continues to be well above 4%, but hopefully a good monsoon should take care of that.