If real interest rates remain elevated and they will if the RBI holds on to its unerring focus of bringing headline inflation to 4 percent, it is likely to dampen demand and even investments from firms.
RBI MPC policy live updates: The fact is that the RBI Governor Shaktikanta Das and his colleagues at MPC do not have any room for any major change in the rate approach this time compared with the last policy review in October. That’s because the broader inflation pattern the most watched factor by the MPC hasn’t changed much since then.
RBI MPC Meeting: For those waiting for a rate cut, there may not be immediate good news. It is likely that the MPC is likely to continue a pause mode till the first quarter of the next financial year to take a relook at the rate approach.