RBI MPC Meet: RBI will announce on monetary policy today, will there be no change in repo rate this time too?
RBI Repo Rate :central reserve bank on your friday Monetary Policy Committee Review (RBI MPC Review) is about to be introduced. The central bank will present bi-monthly monetary policy review at 10 am. There is a possibility that the central bank may maintain status quo on the policy rate in view of inflationary pressures. Prior to this, for several sessions, the RBI has been keeping the key interest rates stable. Last time RBI Governor Shaktikanta Das had said that the economic activities in the country are gaining momentum, due to which the bank is keeping the repo rate stable and this situation will continue as long as it is necessary.
Let us inform that at present the repo rate is at 4 percent and the reverse repo rate is at 3.5 percent.
Earlier in the week, economic analysts also said that the Reserve Bank of India may keep key policy rates unchanged amid fears of a third wave of the Kovid-19 epidemic and rising retail inflation. Experts had said that the central bank will look at the macroeconomic situation for some more time before taking any decisive action.
Apart from this, rates of GDP growth and CPI inflation (consumer price index or retail inflation) will also be monitored. Last time the Reserve Bank had reduced the economic growth forecast from 10.5 percent to 9.5 percent in the current financial year. At the same time, the CPI inflation for the financial year 2021-22 has been estimated at 5.1%.
Explain that the six-member MPC, headed by the Governor of the Reserve Bank, takes decisions on important policy rates.