The RBI is expected to maintain its policy rate in the upcoming monetary policy meeting. However, concerns remain about whether the monetary policy stance will be changed and whether the GDP and inflation growth projections for FY24 will be modified. Inflation appears to be abating, but food inflation, particularly cereal and milk, remains a concern. GDP growth has been supported by moderation in import growth and narrowing of the trade deficit. Private sector intent to invest is increasing, but broad-based improvement will require a gathering of consumption growth momentum. RBI is likely to maintain status quo in rates in 2023.
