The Reserve Bank of India (RBI) will leave its key interest rate unchanged at 6.50% on June 8 and for the rest of 2023 as it waits to see the economic impact of a series of hikes over the past year, a Reuters poll of economists found.
Despite hitting an 18-month low of 4.70% in April, inflation was not expected to fall to the RBI’s 4% medium-term target for at least another two years, suggesting rate cuts are unlikely in the immediate future.
All 64 economists in the Reuters poll taken between May 16 and 29 expected no change to the 6.50% repo rate at the conclusion of the RBI’s June 6-8 meeting.