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RBI monetary policy expectations 2023; What are the industry anticipations?

The three-day monetary policy meeting of the Reserve Bank of India (RBI) began on Wednesday, December 6. RBI Governor Shaktikanta Das will disclose the decision of the Monetary Policy Committee (MPC) around 10 am on Friday, December 8.

There is widespread anticipation of rates staying as it is after the RBI MPC meeting even as inflation has eased significantly and economic growth remains strong. RBI may keep rates steady on December 8. Experts are of the view that the RBI will stay cautious about inflation which is still above its 4 per cent target.

What are the industry expectations?

Mr. Madhusudan Sharma, Executive Director, Bharat Housing Network, housing credit platform and infrastructure for affordable housing

“The Reserve Bank of India (RBI) is likely to keep interest rates unchanged in its upcoming monetary policy review as inflation is in control. The central bank would want to support the GDP growth which is picking up momentum. This favorable stance could bode well for the housing sector as well, where we anticipate continued strong demand for home loans across segments. Additionally, the sector will also get a boost from expected supportive policy measures, particularly in rural and semi-urban areas.

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Mr Vimal Nadar, Senior Director, Research | Colliers India
The Central Bank is expected to keep the repo rate unchanged at 6.5% as the spreads of home loan lending rates amongst the Banks & financial institutions continue to narrow in the past few months. This will continue to provide greater visibility to prospective homebuyers with respect to their long -term financial commitment of buying a house along with short-term cash flows in terms of EMIs.
The macroeconomic indicators continue to reinforce the robust domestic outlook with GDP exceeding expectations during July-Sept at 7.6%. While inflation moderated to 4.87% in October, the Bank will continue to emphasize on taming inflation levels closer to 4% while ensuring accelerated growth.

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