Experts are of the opinion that the Reserve Bank may go in for a status quo this time and wait for more macro data after the announcement by the U.S. to impose 25% tariff on Indian imports beginning August 7.
However, a section of industry players do hope for a 25 basis points rate cut on Wednesday.
Vivek Iyer, partner and financial services risk leader, Grant Thornton Bharat opined that the RBI’s MPC meeting will see no rate cut and cited reasons for it.
He said the external environment continues to be too volatile and uncertain and there needs to be some more time for the monetary transmission to take effect.
“The tariff uncertainty we believe was taken into account in the earlier rate cut and hence we don’t believe that the tariff situation should substantially weigh in on the RBI decision,” Mr. Iyer said.
Praveen Sharma, CEO, REA India (Housing.com) said that with the RBI having already frontloaded a 100 basis point rate cut this year, the MPC is expected to maintain the status quo in the upcoming policy announcement.
“While a lower interest rate environment is always a positive, today’s homebuyers are increasingly driven by long-term confidence rather than short-term rate fluctuations. On their part, developers are sustaining momentum by offering flexible payment plans and smart incentives that ease the financial burden and enhance buyer affordability,” Mr. Sharma said.
PTI
