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Run-up to RBI monetary policy review: Expect another hawkish pause

The Monetary Policy Comm­ittee (MPC) is expected to maintain the status quo on policy rates for the fourth consecutive time in its October 4-6 review meeting.

The incremental information available since its last meeting in August suggests that growth and inflation prints for the second quarter (Q2) of financial year 2023-24 (FY24) will exceed the committee s projections.

However, the Consumer Price Index (CPI)-based inflation is expected to moderate in the second half (H2) of FY24. ....

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