RBI MPC Meeting 2024 Live Updates: RBI Governor Shaktikanta Das to announce monetary policy at 10 a.m.

The interim Budget 2024 has set the stage forRBI to go in for 50 basis points cut in repo rates this year, say foreign banks and brokerage houses.

“With government gross borrowing programme likely to decline by 8.5 per cent YOY into the next year, G-Sec Yields (10 year) declined by 12 bps today (Thursday) to 7.06 per cent. The tight fiscal also increases the possibility of policy rate cuts by the RBI. We build in 50 bps rate cut by the RBI in 2HCY24 (second half of Calendar Year 2024)”, Jefferies, a foreign brokerage house, said in an equity research note post the interim Budget.

The Budget 2024-25 is fiscally tighter than market expectations, which is remarkable, given the upcoming elections, with no new social scheme announced or expanded, it added. This also possibly reflects the government’s confidence in re-election, Jefferies has said, adding the 16 per cent jump in capex is better than its expectations.