After the announcement of tax relief now the middle class have high hopes from 7th February. The next trigger of the stock market also depends on the RBI monetary policy which is to be held on 5-7 February and would be the last meeting of Budget 2024. It is anticipated that the policy will talk about interest rates.
On February 1 when tax relief have been announced by the finance minister to the people with income up to 12 lakhs, now people hope that the next policy will reduce or cut interest rates due to rising inflation which will reduce the cost of borrowing and EMI on the middle class.
Looking at the market trends, inflation, and economic growth, the central bank can decide to decrease the interest rates by 25bps. If this announcement has been made, it would be the first cut in the last four years.
Analyst Opinion
Despite a lot of uncertainties, it is expected that inflation will slow down and come to 4% as per the economic survey of 2025. It is also mentioned that economic growth will remain stable and government agencies will help to maintain this momentum.
Different experts and analysts have different opinions, one of the economists India and ASEAN economist Rahul Bajoria mentioned in his statement that both growth and inflation trajectory highlights the need to ease monetary conditions.
However, Garima Kapoor from Elara Securities mentioned she is expecting a cut of 25 bps in the repo rate.
The policy will be announced by Shaktikanta Das who replaced the governor of RBI is Sanjay Malhotra on December 9th. It will be his first policy announcement.