New Delhi: The Reserve Bank of India is likely to announce a hike in the benchmark interest rate – the repo rate – on Thursday after the three-day meeting of the Monetary Policy Committee. Governor Shaktikanta Das will announce the results of the meetings at 10 am. Will hold a press conference tomorrow afternoon. The RBI began its first bi-monthly review of the new financial year with its Monetary Policy Committee meeting on April 3, April 5 and April 6.
The central bank conducts six bi-monthly reviews of its monetary policy in a year. And, there are out-of-cycle reviews in which the central bank holds additional meetings in times of emergency. In the latest Monetary Policy Committee (MPC) of the RBI in early February, it decided to increase the repo rate by 25 basis points. 6.5 per cent to manage inflation. So far, the RBI has cumulatively raised the repo rate, the rate at which it lends to banks, by 250 basis points from May 2022.
Raising interest rates is a monetary policy tool that usually helps to suppress demand in the economy, thereby helping to bring down the rate of inflation. These meetings are being closely watched by stakeholders as almost every central bank tries to take stock of rising inflation. A slight slump. According to the latest Ecowrap report by SBI Research, the RBI is expected to pause its interest rate hike and the current 6.5 per cent repo rate could be the final rate for now. The report said that RBI has enough reasons to hold off on the repo rate hike in the April meeting.
In the RBI’s latest Monetary Policy Committee (MPC) in early February, it decided to increase the repo rate by 25 basis points to 6.5 per cent to manage inflation. Raising interest rates is a monetary policy tool that usually helps to suppress demand in the economy, thereby helping to bring down the rate of inflation. According to advisory firm MK Global Financial Services, the repo rate is likely to be hiked by 25 basis points (100 basis points) by the RBI. equal to 1 percentage point). “Additionally (for rate hikes), the neutral stance will give the MPC the flexibility to be non-committal on forward guidance, yet give nuanced direction,” MK said in a report. ,