Mumbai, August 08, 2024: HDFC Bank’s Chief Economist, Abheek Barua, responded to the RBI’s latest credit policy, which kept the repo rate and its stance unchanged. Despite global expectations for rate cuts, the RBI’s decision was influenced by domestic factors and a hawkish view on food inflation risks. The RBI raised its food inflation forecast for Q2 FY25 by 60 basis points to 4.4%, with overall inflation projections above 4% for the next year. This cautious stance suggests that expectations for a rate cut or policy shift will be delayed.
