Srinagar: Abheek Barua, Chief Economist – HDFC Bank has stated that the decision by the RBI to change no repo rate has been guided by domestic factors even as rate cut expectations have risen globally.
He said the overall tone of the policy seemed hawkish with the RBI highlighting the risks around stickiness in food inflation.
The food inflation forecast was raised by 60bps for Q2 FY25 to 4.4% and now inflation forecasts for the next four quarters all stand above 4%.
“With the RBI refraining from creating any space for a policy pivot, expectations of a future rate cut or change in stance will have to be pushed forward.”
