RBI Monetary Policy: Will RBI Change Repo Rate? What To Expect On Inflation, GDP Growth? Know More Over Here

After the RBI latest monetary policy meeting, many global rating agencies revised India's GDP growth forecast upwards. Finance Minister Nirmala Sitharaman, also said that India will grow over 8 per cent in FY24.

The Reserve Bank of India (RBI) governor Shaktikanta Das will announce the Monetary Policy Committee’s (MPC) decision on key interest rates like repo rate today. The central bank has not changed the repo rate since the last six consecutive MPC meetings. The repo rate currently is at 6.5 per cent. 

RBI Monetary Policy: What to expect?

Experts believe the central bank is very likely to maintain the status quo on interest rates along with caution on inflation and the geo-political outlook. So according to the various polls, RBI will keep the repo rate unchanged at the current rate of 6.5%.

Experts also believe that RBI is unlikely to change its policy stance before the August 2024 MPC review and any rate cut is unlikely before that.

The MPC had kept the repo rate unchanged in its last RBI MPC meet which was held in February 2024.The decision was not unanimous and one member had recommended a rate cut of 25 basis points and policy change stand to neutral.

RBI Monetary Policy: What To Expect On Inflation?

Recently, Inflation has dropped, it was 5.1 per cent in February 2024 as compared to earlier 5.5 percent in December 2023. The core CPI inflation excluding food and beverages was at a low of 3.5 per cent in February 2024.

After a recent cut in the prices of petrol, diesel and LPG inflation is likely to further fall in March and may come below 5 per cent.

As the normal monsoon season is expected this year, CPI inflation is likely to be in the RBI’s comfort zone of 4-6 per cent in FY25.

RBI Monetary Policy: What To Expect On India GDP Growth?

After the RBI latest monetary policy meeting, many global rating agencies revised India’s GDP growth forecast upwards. Finance Minister Nirmala Sitharaman, also said that India will grow over 8 per cent in FY24.

RBI in today’s meeting may increase India’s GDP growth forecast as compared to earlier GDP growth rate.

RBI monetary policy: What Is Repo Rate?

Repo rate is the rate at which the RBI lends short-term funds to banks. The repo rate is currently at 6.5 percent and has not been changed since April 2023. 

(With Inputs From ANI)