The Reserve Bank of India has made its stance neutral without making any change in the interest rates. RBI surprised all the experts across the country with its decision to change its stance. This means that RBI has opened the possibility of cutting interest rates in the coming few months. This decision of RBI is being described as practical. A cut in interest rates is expected in the coming months. Experts say that even though the Central Bank has not made any change in the repo rate, it has taken the first step towards reducing the interest rate by making its relatively aggressive stance 'neutral'. Let us also tell you what six experts of the country have to say?

6 experts predicted this

1. Industry body Assocham termed RBI's monetary policy review as realistic and practical and said that 'withdrawal of accommodative stance' and adoption of 'neutral' stance is an indication that interest rates will fall in the next few quarters. Assocham Secretary General Deepak Sood said the change in stance to 'neutral' should be seen as a positive step. This points to the tight monetary policy of the RBI, which is driven by domestic and global events.
2. However, the US Federal Reserve's decision to cut policy rates in September has created some scope for change in policy rates, said Rumki Majumdar, an economist at financial consultancy Deloitte India. However, before RBI takes such a decision, it would be wise to keep an eye on inflation and currency movements. He said that if needed, RBI can reduce the interest rate in December. Price fluctuations will be significant during the festive months.
3. Siddharth Sanyal, chief economist and head of research at Bandhan Bank, said that the status quo on the repo rate was not a surprise. The MPC took the right decision to wait for important information related to the global crisis, important election results, commodity price trends and domestic growth-inflation dynamics in the coming months.
4. HDFC Bank Chief Economist Abhik Barua said today's announcement emphasized domestic conditions in monetary policy making. He said that the apex bank has accepted the trend of decline in inflation rate on a sustainable basis, although it also mentioned domestic and global risks. Barua said that in view of this, if conditions are favorable in the coming months, the possibility of interest rate cut in December cannot be ruled out.
5. Sujan Hazra, Chief Economist and Executive Director, Anand Rathi Shares and Stock Brokers, said that the RBI's decision to keep the policy rate repo unchanged and make the stance neutral is as expected. Hazra said that we believe that if macroeconomic indicators remain weak till October-December quarter, then the possibility of rate cut in December 2024 will increase. However, if growth picks up, RBI may wait till February 2025.
6. Siddharth Choudhary, senior fund manager, Bajaj Finserv AMC, said the shift from withdrawal of accommodative stance to neutral stance is an acknowledgment of the fact that inflation is expected to moderate in the coming quarters, barring a surge in the next few months due to base effect. At the same time, important figures indicating growth are slowing down. He said that even though the growth forecast has not been revised downwards, this change has created scope for the RBI to cut rates in the upcoming policies.