Making a case for status quo on interest rate by the RBI, PwC Partner and Economic Advisory Services leader Ranen Banerjee said that any cut at this time would amount to “wasting a bullet” in an environment when growth is robust and inflation is benign.
The Reserve Bank is unlikely to cut key policy rate in the next Monetary Policy Committee (MPC) meeting next month, he said.
The meeting of MPC headed by Reserve Bank Governor Sanjay Malhotra is scheduled for February 4-6, 2026. This will be the last meeting of the current fiscal.
If the growth numbers are holding up and base year revision is also on the anvil, which is expected to provide better estimates, then there is no need for rate cut, he told PTI.
Observing that private capex is not interest rate sensitive, Banerjee said, there will be pick up when capacity utilisation is close to 85 per cent.
“I do not think that the private capex is held up because of the interest rate. It is because there is an uncertainty of demand or t​Making a case for status quo on interest rate by the RBI, PwC Partner and Economic Advisory Services leader Ranen Banerjee said that any cut at this time would amount to “wasting a bullet” in an environment when growth is robust and inflation is benign.
The Reserve Bank is unlikely to cut key policy rate in the next Monetary Policy Committee (MPC) meeting next month, he said.
The meeting of MPC headed by Reserve Bank Governor Sanjay Malhotra is scheduled for February 4-6, 2026. This will be the last meeting of the current fiscal.
If the growth numbers are holding up and base year revision is also on the anvil, which is expected to provide better estimates, then there is no need for rate cut, he told PTI.
Observing that private capex is not interest rate sensitive, Banerjee said, there will be pick up when capacity utilisation is close to 85 per cent.
“I do not think that the private capex is held up because of the interest rate. It is because there is an uncertainty of demand or t ​Latest News [ SOBAN NEWS: International and National ]
