Analysts largely expect the central bank to maintain the status quo, but add there could be a rate cut later in the financial year. There are also some who see the rate-cut cycle, which started on January 15, 2015, by bringing down the repo rate to 7.75 per cent from 8 per cent, to have reached its end.
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Currently, the repo rate stands at 6 per cent.
The following charts illustrate why the RBI won’t be in a hurry to cut rates, even as growth is slowing. Inflation, which the central bank targets to keep under check, surprised analysts with its sharp rise in the past two readings.