The six-member Monetary Policy Committee (MPC) is likely to vote unanimously to keep the policy repo rate unchanged at 6.50 per cent in the backdrop of retail inflation for April 2023 easing to a 19-month low and FY23 GDP growth accelerating more than the earlier estimates.
While majority of the members could vote for the “to remain focussed on withdrawal of accommodation” stance, a couple of members may prefer shifting of gears to the “neutral” stance in the run-up to a likely rate cut (or two) that could happen in the second half of FY24.