Will the repo rate be cut for the fourth time this year? What are brokerage firms' opinions amid the weakening rupee?

RBI on Repo Rate: The decision of the six-member MPC meeting, chaired by Reserve Bank of India (RBI) Governor Sanjay Malhotra, will be announced on Wednesday.

RBI MPC Meet: The bi-monthly review meeting of the Monetary Policy Committee (MPC), which decides on policy interest rates, began on Monday. Experts believe that policy rates may be kept stable this time, while some have predicted a 0.25% cut.

MPC Meeting Amid High Tariffs

The decision of the six-member MPC meeting, chaired by Reserve Bank of India (RBI) Governor Sanjay Malhotra, will be announced on Wednesday. This meeting is taking place at a time of severe pressure due to global tensions and the imposition of 50% high tariffs on Indian exports by the United States.

The RBI has cut the repo rate by a total of 1 percentage point in three rounds since February this year. However, in the August review, the repo rate was kept stable at 5.50%.

A Goldman Sachs report expects the repo rate and policy stance to remain unchanged for the time being. It also says that a further 0.25% rate cut is possible at the next meeting in December. Meanwhile, Bajaj Broking says the market is not expecting any major changes this time.

Expectations for Interest Rate Reduction

The real estate sector believes that sluggish retail inflation and changes in GST slabs have reduced the tax burden, creating room for a rate cut. Praveen Sharma, CEO of Housing.com, said that the festive season is the best time to buy a home, and a reduction in interest rates could boost sales. Ashok Kapur, Chairman of Chrysumi Corporation, also said that a rate cut will boost residential demand.

However, Shikhar Agarwal, Chairman of BLS E-Services, believes that given the strong domestic demand and recent GST reforms, RBI may also adopt a wait-and-see strategy for now.