The Monetary Policy Committee of the Reserve Bank of India will announce its decision on interest rate and other key monetary policies on April 8. The 3-day meeting of the Monetary Policy Committee, headed by RBI Governor Sanjay Malhotra, began on April 6.
In the February MPC meeting, the panel kept the repo rate unchanged at 5.25 percent to prioritize stability and took a wait-and-watch approach. However, since the last meeting, there have been significant geopolitical changes due to the West Asia crisis, oil and gas supply, and the subsequent decline in the rupee. Under these circumstances, it will be interesting to see how the Monetary Policy Committee will respond.
RBI MPC decision: Date and time
The Reserve Bank Governor, Sanjay Malhotra, will give a statement on the Monetary Policy Committee’s decision, which will be aired live on the official YouTube channel of the Reserve Bank of India.
In addition, you can see the live updates on MPC’s decision, Governor Malhotra’s, and expert opinions at www.financialexpress.com.
What are key expectations?
Economists at the Yes Bank say that the Reserve Bank is likely to maintain the status quo by keeping the rates on hold.
“Very clearly, the rate cutting cycle is over as inflation trends higher, INR depreciation pressure bites and global central banks signal caution on inflation and rate cycle. However, a rate hike is also not imminent as India stepped into the current crisis from an advantageous position of low inflation-high growth.” A Yes Bank report said.
Madan Sabnavis, Chief Economist, Bank of Baroda, said that they do not expect any change in repo rate or stance this time. “The tone will be cautious and what will be eagerly awaited is RBI’s forecast of GDP and inflation under the prevailing uncertainty. We do not expect any measures for either liquidity or currency management as RBI will do whenever required as we have seen of late.”Sabnavis adds.
Given the projected uptrend in CPI inflation, ICRA expects an extended pause on the policy rates throughout the fiscal in spite of the anticipated slowdown in growth, although the RBI would continue to intervene on the liquidity front.