RBI Monetary Policy Announcement Time Today: Reserve Bank of India will release this year’s fourth bi-monthly monetary policy review statement with a decision on repo rate today, after a three-day meeting of the RBI MPC.
RBI Policy Today Timing: The Reserve Bank of India will release its bi-monthly monetary policy review statement today afternoon, where Governor Urjit Patel is widely expected to hike repo rate by 25 basis points, in the wake of falling rupee and threat of widening current account deficit.
RBI, which has a inflation-targeting mandate, may hike key policy rate, or repo rate, for third time in a row against the backdrop of upward pressure on inflation due to rising crude oil prices. The market will also watch the six-member Monetary Policy Committee (MPC) comments on the outlook for inflation and economic expansion.
The October MPC decision is crucial as there is a lot of expectation from the central bank for reining in the market turbulence. A day before the MPC decision, the rupee hit a new low of 73.76 against US dollar, while crude oil prices were at a 4-year high of $86 a barrel.
Moreover, the recent interest rate hike by the United States Federal Reserve by 25 basis points from 2% to 2.25% may also weigh on the RBI monetary policy repo rate decision. The RBI had hiked repo rate in June and August by 25 basis points each, citing upward pressure on inflation and volatility in crude oil prices.
RBI will release its bi-monthly monetary and credit policy review statement on its website at 2.30 pm today, Friday, 5 October 2018. The six-member Monetary Policy Committee will shortly thereafter address the press.