‘RBI unlikely to announce rate cut amid strong economic growth’

Spread the news

Damini Sharma

North  News

Chandigarh, October 3

The Reserve Bank of India (RBI) is expected to maintain current interest rates in its upcoming monetary policy meeting, according to a report from the State Bank of India (SBI). The report cited India’s robust economic growth, which exceeds capacity, as the key reason for holding rates steady, despite interest rate trends in the US.

The SBI report emphasized that the RBI is likely to prioritize domestic economic conditions over global influences. “With growth above potential output, there is a strong case for a pause,” the report noted, adding that the RBI may take an independent stance on domestic rates.

Additionally, the report highlighted the critical link between credit growth and deposits in the Indian banking system, warning that declining loan demand could negatively impact savings levels. It stressed the importance of sustained credit growth and investment for economic stability.