Economic growth is slowing and central banks globally are easing their monetary policy stance. The US Fed just cut rates for the first time in over a decade. Will the Monetary Policy Committee cut the repo rate for the 4th time in a row too?
The CNBC-TV18 Citizens’ Monetary Policy Committee (MPC) has voted unanimously for a 25 basis point rate cut, come August 7. The panel is headed by former chief statistician of India Pronob Sen and comprises renowned economists Sajjid Chinoy of JPMorgan, Sonal Verma of Nomura, Soumya Kanti Ghosh of SBI and Samiran Chakraborty of Citibank.
The verdict was split when asked about their repo rate forecast for the full year. Some believe a rate cut on August 7 is enough. But the majority are batting for a minimum of 50 basis point rate cut this year.
The CNBC-TV18 Citizens’ Monetary Policy Committee has also urged the RBI to ensure liquidity is ample and even make an outright commitment to make sure that liquidity in the system remains surplus.
Latha Venkatesh of CNBC-TV18 is in conversation with these eminent economists on what the MPC can and should do in the upcoming policy.