3-day RBI MPC meeting kicks off
6-member Monetary Policy Committee is likely to keep Repo rate unchanged at 6.50%, with a 4:2 vote in favour, retain policy stance of ‘withdrawal of accommodation: Experts
3-day RBI MPC meeting kicks off
Catious View
♦ RBI last hiked Repo rate to 6.5% in Feb 2023
♦ Global economic outlook, domestic inflation trajectory will be in focus
♦ Firm domestic growth-inflation mix
♦ Monitoring developments in US Fed policy
Mumbai: The Reserve Bank of India’s rate-setting panel started its three-day deliberations for the next set of bi-monthly monetary policy amid expectations of no change in benchmark interest rate in view of concerns on inflation and economic growth remaining steady.
The decision of the RBI Governor Shaktikanta Das-headed six-member Monetary Policy Committee (MPC) will be announced on Thursday. The MPC may also refrain from rate cut as economic growth is picking up, notwithstanding the elevated interest rate of 6.5 per cent (Repo rate), said experts.
Retail inflation based on consumer price index (CPI) increased to a four-month high of 5.08 per cent in June as food items, including vegetables became dearer. The government will release the data for July later this month.
“RBI is likely to pause as food price movements currently is imparting a positive bias to RBI 4.5 per cent projection likely prospects of an excess rainfall in August and September could also have a debilitating impact on food prices,” said a SBI research report.
