RBI Monetary policy LIVE updates: RBI likely to keep rates unchanged

The Reserve Bank of India's (RBI's) six-member monetary policy committee, headed by Governor Shaktikanta Das, is scheduled to announce the outcome of the fourth bi-monthly monetary policy today. The central bank is forecast to hold the benchmark repurchase rate at 4 per cent, according to all 30 economists surveyed by Bloomberg. According to money market analysts, the central bank will have its eyes on important numbers like inflation and earnings.

Experts largely expect the RBI to revise its economic growth forecast upwards, given further improvements seen in Q2 of FY21, with a rise in economic activity across India, though the coronavirus is yet to come under control fully. The gross domestic product (GDP) reading for the quarter ended September 2020 came in at -7.5 per cent, which is far better than a 24 per cent contraction seen in the June quarter, which was mostly marred by lockdowns. This is also an indication of improving economic activities across the country.

Consumer Price Index (CPI) hit a nearly six-and-a-half-year high of 7.6 per cent in October. The repo rate stands at 4.00 per cent, and reverse repo rate at 3.35 per cent.

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