According to Deutsche Bank’s Das, the RBI is expected to keep its FY25 CPI inflation forecast unchanged at 4.5%, while the next fiscal year's growth forecast could be raised to 7.4% from the current 7%.
Economists said that the six-member rate-setting panel of the RBI is unlikely to tinker with the repo rate the rate at which RBI lends money to banks to meet their short-term funding needs in the upcoming policy.
The statistics ministry will release the Consumer Price Index data for August and industrial production data for July at 5:30 pm on September 12, with the latter expected to have increased by 5% compared to July 2022
While there’re concerns over higher consumer price index (CPI) inflation, driven by an increase in prices of vegetables and pulses, the central bank may continue with its policy stance of ‘withdrawal of accommodation’ amidst surplus liquidity in the banking system.
Some economists think the MPC should now get out of withdrawal of accommodation and into neutral gear. However, that may only spark hopes of an interest rate cut something policymakers will want to avoid.