The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) is set to decide on interest rates, with the market anticipating a 25 bps rate cut. However, experts are divided, with some expecting the rate cut soon, while others suggest the RBI may delay it until April due to global uncertainties and inflation concerns. RBI Governor Sanjay Malhotra will announce the decision on February 7, 2025

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• The RBI’s MPC is deliberating on a 25 bps repo rate cut amid economic uncertainties.
• The market largely expects a rate cut after a budget focused on consumption.
• Key factors influencing the decision include economic slowdown, moderating food inflation, and tight liquidity.
• CareEdge Ratings anticipates a 25 bps rate cut, with the policy statement possibly carrying a dovish tone.
• SBI Research expects cumulative rate cuts of 75 bps, with a 25 bps cut in February and another in April.
• Bank of Baroda sees space for a 25 bps rate cut, with a potential total rate reduction of 50-75 bps.
• HDFC Securities’ Dhiraj Relli suggests that the RBI may delay the rate cut until April due to liquidity concerns and global uncertainties.
• YES Securities’ Amar Ambani believes the RBI will wait and monitor global conditions before making any cuts, particularly due to the US-China trade war.
• Global economic conditions, including a depreciating Indian rupee, may influence the timing of the rate cut.
• Experts are divided on the precise timing of the rate cut, with some predicting a shift from neutral to accommodative policy stance.