Tue Oct 08 21:11:03 UTC 2024: ## RBI Likely to Keep Interest Rates Steady at Next Review Meeting
**Hyderabad, October 8:** The Reserve Bank of India (RBI) is expected to maintain interest rates at their current levels during its upcoming policy review meeting scheduled for Wednesday. This decision comes in light of the recent surge in food inflation, particularly vegetable prices, which has pushed the food inflation index to record highs.
Industry experts believe that the central bank will likely hold off on any rate adjustments, citing concerns about the overall economic stability and the potential for further volatility in global oil prices due to ongoing geopolitical tensions.
“While there is a possibility of a rate cut by half a percentage point by the end of the current fiscal year, the immediate focus remains on maintaining stability,” said Dheeraj Relli, MD & CEO of HDFC Securities.
The repo rate, which is the rate at which banks borrow from the RBI, has remained unchanged at 6.50% for the past ten consecutive review meetings.
The decision to keep rates unchanged at the next meeting will be driven by the need to manage the inflationary pressures while supporting economic growth, experts suggest.
However, a potential rate reduction in the coming months remains a possibility, depending on the evolving economic conditions and inflation trends.
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