RBI Rate Cut Pushed Back to 2024 as High Inflation Takes Priority

Economists push back expectations of RBI rate cut to Q2 FY25 due to hawkish policy stance and high inflation.

RBI targets 4% inflation, not 2-6%, and sees it averaging 4.5% in FY25. Expects it below 4% next fiscal if monsoon normal.

Rate cuts only when inflation durably near 4% target. Repo rate cuts of 100 bps seen in 2024.

Focus on 4% inflation target and liquidity calibration to dissuade premature rate cut expectations.

Global growth downturn, slowing domestic demand should allow policy focus to shift from inflation to growth.