RBI MPC News

Chaired by RBI Governor Sanjay Malhotra, the committee’s decision will be announced on June 6. The Reserve Bank has already reduced the repo rate by 50 basis points in the previous two monetary policy reviews, lowering it to 6 per cent.

On inflation, the governor said the spike in vegetable prices, led by tomatoes, would exert sizeable upside pressures on the near-term headline inflation trajectory.

The Reserve Bank of India (RBI) kept its key lending rate steady for a second straight meeting on June 8, as widely expected, but signalled monetary conditions will remain tight for some time as it looks to further curb inflationary pressures.

In his remarks at the MPC meeting, Das said the cumulative impact of monetary policy actions over the last year is still unfolding and needs to be monitored closely.

Retail inflation has remained above the RBI's upper tolerance level of 6 per cent for two months and in February it was 6.44 per cent.

RBI MPC meeting is scheduled on April 3, 5, and 6. RBI Likely To Hike Benchmark Interest Rate By 25 bps. RBI already increased the repo rate by 250 basis points since May.

"Inflation rates are expected to come down over the year," RBI MPC Member Ashima Goyal told PTI in a telephonic interview.

RBI increases Repo rate by 25 basis points to 6.50%. MPC took the decision with the majority vote of 4 against 2 in the meeting between February 6-8. Earlier, RBI MPC hiked repo rate by 35 bps in December 2022.

RBI will submit failure report to Govt first time since the implementation of law. RBI needs to submit if it fails to keep the inflation below six per cent for 3 consecutive quarters. The RBI has been aggressively raising the key interest rate since May in a bid to contain inflation.

RBI upped the inflation projection to 6.7 per cent for current fiscal year. In April, RBI had projected retail inflation at 5.7 per cent for 2022-23. The Reserve Bank has the mandate to keep retail inflation at 4 per cent.

So far, customers are allowed to use UPI transactions by linking savings or current accounts through users' debit cards. The new arrangement is expected to provide more avenues and convenience to the customers. At present, there are more than 26 crore UPI users in the country.

Governor Das-headed MPC will meet for three day beginning Monday. The decision taken during the meeting will be announced by the governor on Wednesday. The wholesale price-based inflation has remained in double digits for 13 months.

The central bank's MPC has six members, including the governor. Das opined that the current geopolitical situation has led to an upward revision of RBI's inflation projections for 2022-23.

The next bi-monthly monetary policy is scheduled to be announced on Wednesday. The policy meeting is at the end of three-day deliberations of the MPC beginning Monday. There will be no change in the repo rate this time even though a 50 basis points hike is expected next year, Bank of Baroda's Sabnavis said.

The RBI Governor-headed six-member MPC decides on the key policy rates. The panel had left the rates unchanged last time citing concerns on inflation. Shriram Transport Finance Managing Director and CEO Umesh Revankar too said the central bank will keep the repo rate at the present level despite higher inflation.

The low home loan interest rate is definitely going to benefit homebuyers in the near future. The COVID pandemic has adversely affected the real estate sector in the last two months and for economic recovery, the RBI has maintained the repo rate unchanged at 4% and reverse repo rate at 3.35%. The Central bank has also decided to maintain an ‘accommodative stance’ as long as necessary to mitigate the impact of the COVID-19 pandemic.

This is the first time that the Monetary Policy Committee will meet for three days due to "administrative exigencies".

The core Consumer Price Index (CPI) based inflation, adjusted for house rent allowance is moderating, and the HRA impact (post 7th Pay Commission), is largely "statistical", it said.

In its last policy review in August, the RBI reduced the repo rate by 0.25 per cent to 6 per cent in August, citing reduction in inflation risks.

The monetary policy committee of the Reserve Bank of India is expected to cut policy rates by 0.25 percent in August on weak growth and benign inflation, says a Bank of America Merrill Lynch (BofAML) report.