RBI to hold rates through year-end, cut in early 2024: Poll

The Reserve Bank of India (RBI) is expected to keep its key interest rate unchanged at 6.50% at its June meeting and for the rest of 2023, according to a recent poll of economists by Reuters. Despite inflation falling to an 18-month low of 4.70% in April, the rate is not expected to reach the RBI’s 4% target for another two years. Therefore, chances of rate cuts remain low in the immediate future, despite a predicted improvement in the outlook for inflation. Among those surveyed, over two-thirds saw the repo rate remaining the same until the end of the year.