The six-member MPC headed by RBI Governor Shaktikanta Das on Thursday will present the sixth bi-monthly monetary policy statement for 2018-19. The policy has created interest since it’s the last of the fiscal and also the first under Das, who took charge in December 2018 following the sudden exit of Urjit Patel.
The Central Bank may change its stance to neutral from calibrated tightening, CARE Ratings. “The RBI is likely to alter its monetary policy stance from “calibrated tightening” to “neutral” with inflation being lower than its target for 5 consecutive months but will maintain status quo in the repo rate given the core inflation being sticky at 5% and likelihood of build-up in inflation in the coming months…,” it added.
The rating agency said in a report that the inflation may rise as we move ahead in view of budgetary announcements including income support schemes, interest subvention and tax exemptions. It also said that food inflation may also come under pressure on account of rise in minimum support price (MSP).
The oil prices may also rise due to a likelihood of supply cuts by OPEC members and removal of waivers granted by the US government on the Iran sanctions. A rise in spending on account of upcoming general elections may also shoot up inflation, it added.
Against the tradition, the Reserve Bank of India (RBI) will place the MPC resolution on its website at 11.45 am on February 7.