RBI MPC to hit pause button: CARE Ratings

Chennai, Feb. 4 -- The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) is like to press the pause button at its policy meeting being held from February 4- February6, credit rating agency CARE Ratings said.

The repo rate is the rate at which the RBI lends to the banks and it is currently at 5.25 per cent.

"Although inflation projections suggest there is room for another 25-bps rate cut, we believe the MPC will pause and preserve its policy ammunition," CARE Ratings said.

According to CARE Ratings, retaining this policy flexibility remains important even after recent trade agreements, as the global environment remains uncertain and susceptible to geopolitical flare-ups that could materially impact domestic growth and inflatio...