June 6 (Punjab Khabarnama) : The three-day meeting of the Monetary Policy Committee (RBI MPC Meeting) of the Reserve Bank of India (RBI) started on Wednesday. It is believed that the MPC will not make any change in the key interest rate i.e. repo rate. After the election results, now the market is eyeing the results of the RBI MPC meeting, which will be announced on Friday (June 7). Reserve Bank Governor Shaktikanta Das will announce the decisions taken by the Monetary Policy Committee on Friday.
There will be no change in repo rate
Experts believe that the central bank is unlikely to cut the interest rate (repo), as concerns about inflation still persist.
When was the last change in the repo rate?
The repo rate has remained at a high of 6.5 percent since February 2023. Amid the boom in the economy, it is believed that the MPC will avoid cutting interest rates. The central bank last raised the repo rate to 6.5 percent in February 2023 and since then it has kept it unchanged for seven consecutive times.
Dhruv Agarwala, Group Chief Executive Officer (CEO) of Housing.com and PropTiger.com, said that India’s economy has continued its strong performance and achieved an impressive growth rate of 8.2 percent in 2023-24, up from seven percent in 2022-23.
He said, “In view of this, it is expected that the RBI MPC will maintain its current policy stance amid the current inflation pressures and there is little possibility of a cut in interest rates this year.” The government has given the Reserve Bank a target of keeping retail inflation at four percent with a variation of two percent. The MPC consists of three external members and three RBI officials. The external members of the rate setting committee are Shashank Bhide, Ashima Goyal and Jayant R Verma.