Experts believe that the RBI will wait a little longer before taking any major decision on the monetary policy front, as the central bank’s focus is on managing inflation as well as boosting economic growth.
rbi has started meeting
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), which sets key policy rates, began its three-day meeting on Wednesday to finalize the bi-monthly monetary policy review. Experts believe that the central bank may opt for status quo on interest rates amid inflationary pressures.
Reserve Bank Governor Shaktikanta Das will release the proposals of the Monetary Policy Committee (MPC) on Friday. The six-member MPC, headed by the RBI governor, also includes three external members. Experts believe that the RBI will wait a little longer before taking any major decision on the monetary policy front, as the central bank’s focus is on managing inflation as well as boosting economic growth.
Interest rates did not change in June
The central bank had kept the prime interest rate unchanged at 4 per cent in its June policy meeting. This was the sixth time in a row that the MPC maintained the status quo on the interest rate. M Govinda Rao, Chief Economic Advisor, Brickwork Ratings, said the MPC has kept key policy rates unchanged from May 2020. He added, “We expect the RBI to continue to support the recent revival by keeping the MPC repo rate at 4 per cent.
Interest rates expected to rise
We also hope that the central bank will give a warning and emphasize the need to monitor the situation closely. “We expect the RBI to maintain the status quo in its monetary policy,” said Vikas Wadhawan, Group CFO, Housing.com, Makaan.com and PropTiger.com.
read this also:
Rajya Sabha approved the LLP amendment bill, now it will be easy to do business
This eco friendly cooler is made at a cost of 500 rupees, the President himself inaugurated it