The change in the RBI's stance to "neutral" from "withdrawal of accommodation" has given a signal about the interest rates reversing downwards in the next few quarters, leading industry chambers and experts said on Wednesday.
Dhiraj Relli, MD and CEO, HDFC Securities said while they do not expect the RBI to start its rate cut cycle, the possibility of a change in stance to neutral is on the table.
The six-member committee began deliberations on interest rates and analysing the state of the economy amid tensions in the Middle East. The RBI Governor will announce the MPC decision on October 9.
The Reserve Bank of India (RBI) is set to begin its three-day monetary policy meeting on Monday and will run from October 7 to October 9.
The year-on-year inflation rate (3.65 per cent), based on the All India Consumer Price Index (CPI), for the month of August was the second lowest in the last five years.
The Reserve Bank of India (RBI) may begin lowering interest rates around October, provided that external factors like weather conditions and international commodity prices do not cause any disruptions, the credit rating agency, Crisil said in its report.
RBI Governor Shaktikanta Das on Thursday announced that the Monetary Policy Committee (MPC) has decided with a majority of 4:2 members to keep the policy rate unchanged at 6.5%.
Reserve Bank of India's (RBI) Governor Shaktikanta Das on Friday said the Monetary Policy Committee (MPC) has decided to keep the policy rate unchanged for the eighth time in a row at 6.5 per cent.
The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) member highlighted that going ahead, as India develops, the problem of high food inflation would be "less severe".
The decision was taken at the Monetary Policy Committee (MPC) meeting of the apex bank.
