Neelkant Mishra of Axis Bank says that RBI should not cut interest rates this week

Reserve Bank of India should not cut interest rates in this week’s Monetary Policy Committee meeting as inflation remains sticky, according to Neelkant Mishra, Chief Economist of Axis Bank Limited.

Mishra said, “It is now a consensus that RBI will be cutting rates and from a prescriptive angle, I do not think they should cut rates due to the viscosity of inflation.” Ndtv benefitsDecember CPI is a matter of concern on print.

“Inflation starts increasing and the final survey has increased 61 base points in the hopes of trade on inflation in the final survey.” “Perhaps they can (cut rate) in April or June.”

According to The Economist, the central bank should do a lot in terms of improving sustainable liquidity. Till now has been very meaningful on the quantitative side.

“If your base growth is less than 5% in the growing economy in double digits, then it is a huge driver of a recession. Credit growth falls from 17% to 11% to 11%, the recession, “Mishra said.

He suggested that the RBI may reduce credit criteria on areas such as home mortgage to trigger retail loan creation.

The MPC will hold a meeting between 5 and 7 February, and the policy decision will be announced on Friday – first under Governor Sanjay Malhotra.