RBI MPC meeting next week: What investors should expect
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The RBI’s Monetary Policy Committee (MPC) meeting on June 7, 2024 will be held in the aftermath of the momentous Lok Sabha election results on June 4, 2024. With the BJP poised to romp home, there is likely to be an air of expectation and excitement and a spring in the step. In view of multiple factors, including inter-alia, the global and domestic context, and the emerging inflation scenario, the RBI is likely to maintain a status quo on interest rates during this meeting. Why do we say so? Our view is that both the Government and the RBI will prefer to take stock of the macro-level geopolitical uncertainty caused by an escalation of the recent conflict in the Middle East, financial stress, persistent inflation and slowdown in international trade, the future of globalization, overarching macro-environment, the priorities of the Government and the fiscal glide path aimed at gradually reducing the fiscal deficit. The macroeconomic setting ...