RBI MPC meet outcome awaited: 9 financial experts expect constancy in repo rate
The Reserve Bank of India (RBI) commenced its three-day Monetary Policy Committee (MPC) meeting on December 6, 2023. The committee’s verdict on the crucial policy rates is eagerly awaited and is scheduled to be disclosed on December 8, 2023.
The influential gathering is presently in discussions regarding the upcoming bi-monthly monetary policy, with prevailing anticipation of a sustained hold on the short-term key lending rate. This is attributed to the accelerating momentum in GDP growth and manageable inflation levels.
In February of this year, the RBI raised the repo rate to 6.5 per cent, marking the conclusion of the interest rate hike cycle that commenced in May 2022. This cycle was triggered by the Russia-Ukraine war and subsequent disruptions in the global supply chain, leading to elevated inflation in the country.
The consistent maintenance of the repo rate over the last four bi-monthly monetary policies suggests that the RBI is content with the existing level of interest rates. The conclusion of the interest rate hike cycle in February 2023 implies that the RBI is confident in the gradual alleviation of inflationary pressures. This is consistent with the anticipation that inflation will persistently decrease, moving closer to the RBI’s targeted level in the forthcoming months. Additionally, the sustained economic growth serves as additional justification for maintaining unchanged interest rates.
The entire nation awaits the MPC’s decision on December 8 with great anticipation. The results of their meeting will bear substantial consequences for the Indian economy, influencing areas such as borrowing, lending, investments, and overall market sentiment.
The industry has an optimistic outlook and expects RBI to
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