RBI MPC Updates: An announcement will be made today on Friday, February 5, regarding the bi-monthly meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI). RBI Governor Shaktikanta Das will give information about this by holding a press conference at 12 o’clock today. This time most experts believe that there will be no change in the MPC interest rates of RBI. RBI will avoid repo rate reduction. Repo rate is the rate at which RBI gives loans to banks. Explain that this is the first policy of RBI after presenting the budget of FY 2021-22. The six-member MPC meeting began on Wednesday 3 February. The Central Bank has cut the repo rate by 1.15 percent since February last year.
Rates not changed in last 3 policies
The Monetary Policy Committee of RBI did not make any changes in the key policy rates in the last 3 times. Currently, the repo rate is 4 percent, which is 15 years old. At the same time, the reverse repo rate is currently 3.35 percent. At this rate, banks deposit their deposits with the Reserve Bank. It is believed that this time also RBI will not make any changes in interest rates. At the same time, in the policy review, it will try to keep the monetary stance liberal.
Inflation will be on watch
Retail inflation fell to 4.59 percent in December and it came under the RBI’s limit of 2-6 percent. After which it was expected that the Reserve Bank can give some relief in the monetary policy. But after the budget is presented, its expectation is very less. The Reserve Bank can increase its growth estimate after this budget. The center of discussion in the Reserve Bank meeting is going to be how to manage the major fiscal targets set in the budget.
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