RBI MPC Meeting LIVE Updates: The Reserve Bank of India is likely to announce the hike in benchmark interest rate -- repo rate --today after a three-day meeting of its Monetary Policy Committee.
Governor Shaktikanta Das will announce the outcome of the meetings at 10 am, followed by a press conference at noon.
RBI started its first bi-monthly review of the new financial year with its Monetary Policy Committee meeting on April 3, April 5 and April 6. The central bank has six bi-monthly reviews of its monetary policy in a year. And, there are out-of-cycle reviews in which the central bank conducts additional meetings in times of emergency.
At the latest Monetary Policy Committee (MPC) of the RBI in early February, it decided to raise the repo rate by 25 basis points to 6.5 per cent to manage inflation. So far, RBI raised the repo rate, the rate at which it lends to banks, by 250 basis points cumulatively since May 2022.
Raising interest rates is a monetary policy instrument that typically helps suppress demand in the economy, thereby helping the inflation rate decline.
These meetings are being watched carefully by stakeholders as almost every central bank tries to take stock of the rising inflation, with a fear of a looming mild recession.
According to SBI Research's latest Ecowrap report, the RBI is expected to pause its interest rate hike and the current 6.5 per cent repo rate could be the terminal rate for now.
The report asserted that the RBI has enough reasons to pause the repo rate hike in the April meeting.
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Core inflation, which excludes volatile food and energy components, was also expected to have stayed high between 6.05%-6.12% in February, according to estimates from three economists. Unseasonal rains could keep food prices high and a surprise decision by OPEC and its allies to cut output recently has also pushed up oil prices which could add to imported inflation.
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Retail inflation jumped 6.44% year-on-year in February, easing from 6.52% in January but has remained above the central bank's mandated target range of 2%-6% for 10 out of the last 12 readings.
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Raising interest rates is a monetary policy instrument that typically helps suppress demand in the economy, thereby helping the inflation rate decline.
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RBI started its first bi-monthly review of the new financial year with its Monetary Policy Committee meeting on April 3, April 5 and April 6. The central bank has six bi-monthly reviews of its monetary policy in a year. And, there are out-of-cycle reviews in which the central bank conducts additional meetings in times of emergency.
RBI MPC Meeting Live: Another rate hike on cards?
India's Central bank is expected to announce the hike in benchmark interest rate -- repo rate -- on Thursday after a three-day meeting of its Monetary Policy Committee. RBI Governor Shaktikanta Das will announce the outcome of the meetings at 10 am, followed by a press conference at noon.
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