According to Jinshi Data, Goldman Sachs economists said that the newly formed Monetary Policy Committee of the Reserve Bank of India is likely to keep the policy repurchase rate unchanged at 6.50% next week.

Goldman Sachs expects the Reserve Bank of India to maintain its "exit easing" policy stance and continue to reiterate its commitment to its 4% overall inflation target.

Goldman Sachs noted that newly appointed external monetary policy committee member Saugata Bhattacharya is likely to vote for a rate cut and/or shift to a more dovish stance.

Given expectations of slower growth and easing inflation, Goldman Sachs continues to expect the Reserve Bank of India to cut interest rates by 25 basis points in December 2024 and February 2025, and recommends going long on India's two-year government bonds.