RBI may hold repo rates amid high food prices: Business Standard poll

Most respondents expect rate cuts from Dec; change in stance unlikely

The Reserve Bank of India (RBI)’s six-member Monetary Policy Committee (MPC) is expected to maintain a status quo for the ninth consecutive policy review, all 10 respondents said in a Business Standard poll. The RBI will announce the policy decisions on August 8.

After increasing the repo rate by 250 basis points (bps) to 6.5 per cent between May 2022 and February 2023, the MPC kept the repo rate unchanged in the previous eight policy reviews.

Gaura Sen Gupta, chief economist at IDFC First Bank, said the tone of the policy would be cautious on food inflation risks. “Food