: The six-member Monetary Policy Committee (MPC) is set to announce the review of the policy today. A majority of market participants expect RBI to retain status quo on interest rate. However, the inflation projection of 4.5 per cent for FY23 may see an upward revision on account of geopolitical developments.
In the last 10 meetings, the MPC left interest rate unchanged and also maintained an accommodative monetary policy stance. The repo rate or the short-term lending rate was last cut on May 22, 2020. Since then, the rate remains at a historic low of 4 per cent.
Key points to note
The ongoing Russia-Ukraine conflict and surging oil prices are pushing the cost of commodities higher
After the February MPC meeting, the RBI had decided to hold its key lending rates steady.
The Indian market has been witnessing investment outflows for quite some time. In the past two months between February 1 and April 1, foreign portfolio investors have pulled out a net investment of Rs 88,135 crore.
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