RBI MPC meet outcome today: From repo rate to inflation forecast, 5 key things to watch out for
Read RBI Monetary Policy 2024 LIVE Updates here “While the upcoming policy may not see material changes in macro assessment by RBI, issues like case & timing of policy pivot/stance change, factors influencing liquidity management ahead and, of course, assessing which part of the yield curve has the maximum juice, etc would be key for markets," said Madhavi Arora, Lead Economist at Emkay Global Financial Services. Here are five key things to watch out for in RBI policy today: Analysts and economists on D-Street widely expect the RBI to keep its key repo rate unchanged at 6.50% in the April policy meeting for the seventh time in a row. The repo rate is the interest rate at which the central bank lends short-term funds to commercial banks.
The repo rate has been kept unchanged since April 2023. At present, Repo Rate stands at 6.5%; Standing Deposit Facility Rate is 6.25%; Marginal Standing Facility Rate is 6.75%; Bank Rate is at 6.75%; and the Fixed Reverse Repo Rate is at 3.35%. Also Read: RBI MPC meeting: Rate pause may continue on GDP growth, inflation; Key indicators to watch The RBI is likely to continue with its stance of ‘withdrawal of accommodation’.
The central bank’s policy stance indicates the thinking within the Monetary Policy Committee. India's GDP growth rate in the quarter ended December 2023 stood at 8.4%, sharply above RBI’s estimates. However, in its February policy, the RBI had projected India’s GDP to grow at 7% in FY25.
Economists believe the central bank may revise its GDP growth target. Shraddha Umarji, Economist - Institutional Research at Prabhudas Lilladher expects GDP growth for FY25 might be revised upwards to 7.3-7.4% from 7% earlier as all macroeconomic data has been robust. Also Read: RBI
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