RBI Governor Shaktikanta Das. (File photograph)
RBI Monetary Policy February 2024: RBI Monetary Policy Committee (MPC) Meeting Latest Updates, RBI MPC Meet Feb 2024, Repo Rate News & Outcomes
RBI Monetary Policy 2024: Reserve Bank of India Governor Shaktikanta Das will announce the bi-month-to-month coverage at the moment (February 8) amid expectations of continued pause on the important thing rate of interest as inflation stays close to the higher tolerance degree of 6 per cent.
Governor Das-headed Monetary Policy Committee (MPC) began its three deliberations on Tuesday (February 6).
The MPC is entrusted with the duty of deciding the coverage repo price to realize the inflation goal, protecting in thoughts the target of development.
RBI Monetary Policy Time
Das will make the financial coverage announcement at 10 am.
Repo Rate
For a 12 months, the Reserve Bank has saved the quick-time period lending price or repo price secure at 6.5 per cent.
The benchmark rate of interest was final raised in February 2023 to six.5 per cent from 6.25 per cent to comprise inflation pushed primarily by world developments.
Inflation
The retail inflation within the present monetary 12 months has declined after touching a peak of seven.44 per cent in July 2023, it’s nonetheless excessive and was 5.69 per cent in December 2023, although inside the Reserve Bank’s consolation zone of 4-6 per cent.
Pause Expected
State Bank of India (SBI) in a report mentioned the RBI is anticipated to proceed its pause stance in upcoming coverage.
“Strong US non-farm payroll data and wages seem to have pushed back on market expectations for a quick pivot to rate cuts,” it mentioned, and added the primary price lower on the desk might be from June to August interval “looks the best bet now”.
The state-owned lender additionally expects the RBI will proceed with the withdrawal of lodging stance.
SBI additional mentioned the CPI is anticipated to come back round 5.4 per cent in 2023-24 and 4.6 per cent to 4.8 per cent within the subsequent fiscal (2024-25).
Experts throughout sectors are of the view that the central financial institution for the sixth time in a row is not going to tinker with the repo price, which at present stands at 6.5 per cent primarily as a result of considerations over inflation.
The authorities has mandated the central financial institution to make sure the retail inflation primarily based on the Consumer Price Index (CPI) stays at 4 per cent with a margin of two per cent on both facet.
In an off-cycle assembly in May 2022, the MPC raised the coverage price by 40 foundation factors and it was adopted by price hikes of various sizes, in every of the 5 subsequent conferences until February 2023.
The repo price was raised by 250 foundation factors cumulatively between May 2022 and February 2023.
RBI MPC Members
The MPC consists of three exterior members and three officers of the RBI.
The exterior members of the panel are Shashanka Bhide, Ashima Goyal, and Jayanth R Varma. Besides Governor Das, the opposite RBI officers in MPC are Rajiv Ranjan (Executive Director) and Michael Debabrata Patra (Deputy Governor).
(With PTI inputs)
