RBI MPC Meeting: Monetary Policy Committee meeting will start from April 3, there may be a slight increase in the repo rate

Mumbai. The Reserve Bank of India (RBI) is also planning to increase the repo rate by another 0.25 percent in the next monetary review amid the retail inflation remaining above a satisfactory level of 6 percent and the aggressive stance of many central banks including the US Federal Reserve. can decide. The bi-monthly review meeting of the Monetary Policy Committee (MPC), the apex body for the determination of monetary policy, is going to start from 3rd April. This meeting, which will last for 3 days, will end on April 6 with the decision regarding the policy rate. According to the time table released by RBI, the first MPC meeting of the next financial year will be held on April 3, 5 and 6.

In the MPC meeting, a decision will be taken after a comprehensive review of all domestic and international aspects related to monetary policy. During this period, the situation of retail inflation and the recent steps of major central banks like Federal Reserve, European Central Bank and Bank of England will also be analysed.

The repo rate was also increased by 0.25 percent in February.
To control inflation, RBI has adopted the stance of increasing the policy interest rate continuously from May 2022. During this, the repo rate has increased from 4 per cent to 6.50 per cent. The repo rate was also increased by 0.25 per cent in the last MPC meeting held in February.

Retail inflation level more than 6 percent
Inflation based on the Consumer Price Index (CPI) stood at 6.52 per cent in January and 6.44 per cent in February. This level of retail inflation is higher than the comfortable level of 6 per cent prescribed for RBI.

RBI may increase the repo rate by 0.25 percent
Madan Sabnavis, Chief Economist, Bank of Baroda said, “With inflation remaining above 6 per cent for the last two months and liquidity now almost neutral, it is expected that the RBI will once again cut the repo rate by 0.25 per cent.” can increase. Along with this, by declaring its stance as neutral, RBI can also indicate that the rate hike phase is over.

DK Pant, chief economist of India Ratings and Research, is also of the opinion that the repo rate can be increased by 0.25 percent in the MPC meeting. Along with this, he also expressed the possibility of its final rate hike.

However, Ranen Banerjee, Partner (Economic Advisory Services), PwC India, believes that the MPC may also decide to stop the process of increasing the interest rate this time due to supply factors being the major reason behind inflation in India.

MPC will have 6 meetings in the next financial year
This will be the first monetary review meeting of the financial year 2023-24. RBI will organize a total of six MPC meetings in the entire financial year.

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Tags: RBI, reserve bank of india