MPC to maintain status quo until Q1 FY25 at least
With inflation drifting lower in 2023 from their record levels in 2022, most hawkish central banks are likely to turn neutral in the coming months
It is never an easy moment for central bankers. In last three years, they have swung from being overtly accommodative to the current restrictive phase. With economic activity and inflation still adjusting to pandemic-induced behavioural changes and policy responses, conventional economic markers have been subjected to a lower signal-to-noise ratio amid elevated geopolitical uncertainty worsening the overall backdrop.