MPC's brainstorming on repo rate begins, RBI to announce on June 7

Repo rate: A three-day meeting of the Monetary Policy Committee (MPC) under the Reserve Bank of India (RBI) began on Wednesday to decide the policy interest rate (repo rate). MPC members will discuss it among themselves for three days. After this, on Friday, May 7, 2024, RBI Governor Shaktikanta Das will announce new interest rates. However, there is currently no change in the repo rate from February 2023 onwards. No change in repo rate from February 2023 onwards. Experts believe that the central bank is not expected to cut the interest rate (repo rate) as inflation is still a matter of concern. Repo rate from February 2023 is 6.5 percent. Amid economic growth, the MPC is believed to refrain from cutting interest rates. The central bank last hiked the repo rate to 6.5 percent in February 2023 and has kept it unchanged for seven consecutive times since then. Repo rate cut likely: According to SBI's research paper, the central bank should stick to its decision to withdraw the liberal stance. In a statement titled Prelude to the MBC meeting, the RBI is expected to cut the repo rate in the third quarter of the current fiscal and the cut is expected to be moderate. Consumer price index-based inflation is expected to be five percent in May and then ease to three percent in July. After this, retail inflation figures will be released later this month. Inflation is expected to remain below five percent from October to the end of fiscal 2024-25. Also Read: Will Dependence on Political Parties Diminish Government's Power in Economic Reforms? Good performance of Indian economy Dhruv Aggarwal, Group Chief Executive Officer (CEO) of Housing.com and Proptiger.com said that the performance of the Indian economy has been very good. It is expected to reach a growth rate of 8.2 percent in FY 2023-24. However, in 2022-23 it was seven per cent. In view of this, the Reserve Bank MBC is expected to maintain its current policy stance amid ongoing inflationary pressures and is unlikely to cut interest rates this year, he said. Also read: Market recovers from shock after election results, Sensex rises over 2300 points The post MPC's brainstorming on repo rate, RBI to announce on June 7 appeared first on Prabhat Khabar.