Daijiworld Media Network- Mumbai

Mumbai, Apr 1: The Reserve Bank of India (RBI) could extend its ongoing rate-cut cycle if signs of economic slowdown become more evident, according to a recent assessment by ANZ Group. The global financial services firm noted that while the central bank has maintained a cautious monetary stance, persistent growth concerns could compel it to consider further easing.

ANZ Group’s analysis indicates that despite various measures to stimulate economic activity, sectors such as manufacturing and exports continue to struggle. The firm warned that if growth metrics fall short of projections, the RBI may resort to additional rate cuts to support economic recovery.

“The RBI is likely to keep a close watch on growth indicators, particularly in the context of fluctuating global economic conditions. Should growth falter significantly, prolonging the rate-cut cycle would be a reasonable strategy to bolster the recovery process,” ANZ Group stated.

In recent months, the RBI has implemented a series of rate cuts aimed at revitalizing the economy. However, persistent challenges related to global trade, inflation, and financial market instability continue to threaten India’s growth outlook.

Experts believe that while controlling inflation remains a key priority, the central bank may shift its focus towards sustaining growth if economic conditions continue to deteriorate. The forthcoming monetary policy review is expected to offer clearer insights into the RBI’s strategic direction.

Investors and industry stakeholders are keenly awaiting the RBI’s next move, as further rate cuts could have widespread implications for sectors such as real estate, consumer finance, and manufacturing.