RBI may again opt for status quo on key policy rate next week, say experts

Amid rising global commodity prices and the need to contain inflation at home, the Reserve Bank is likely to maintain status quo on interest rates for the eighth time in row in its upcoming bi-monthly monetary policy review later in the week, according to experts.

The Reserve Bank had last cut repo rate by 40 basis points in May 2020 to 4 percent to spur demand in the COVID-hit economy. Since then, the RBI has refrained from taking any action on interest rates.

The RBI Governor headed six-member Monetary Policy Committee (MPC) is scheduled to meet for three days from October 6. The decision taken at the meeting would be announced by Governor Shaktikanta Das on October 8.