RBI MPC Highlights: Sensex Settles Under 81,500, Nifty Slips Over 30 Points After Status Quo Maintained On Key Rates
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The Reserve Bank of India (RBI) will announce the results of its Monetary Policy Committee (MPC) meeting on Wednesday. The MPC will convene to decide on the benchmark interest rate and discuss the future direction of the Indian economy. This bi-monthly meeting, chaired by RBI Governor Shaktikanta Das, was scheduled for October 7-9, 2024. The central bank last raised the repo rate in February 2023 and has kept key rates unchanged since then.
The outcome will be announced on Wednesday at approximately 10 AM. Visit the Reserve Bank of India's official website for press releases, meeting minutes, and related documents. Major updates will also be shared on the RBI's social media accounts on X and LinkedIn.
In the previous MPC meeting, held from August 6-8, the committee decided to maintain the benchmark interest rate at 6.5 per cent. This marked the ninth consecutive meeting where key rates remained unchanged. Experts suggest that the committee is expected to keep the repo rates the same this year as well.
Gaurav Goel, Entrepreneur SEBI registered Investment Advisor, said, "MPC has contradictory positions yet again to deal with respect to inflation and growth. We expect MPC to keep the repo rate unchanged at 6.5 per cent as has done in its last nine previous meeting. However, we do expect it to change the stance from “withdrawal of accommodation” to “neutral” and prepare a platform for rate cuts in their next MPC meetings in December 2024 and Feb 2025. We expect RBI to keep a hawk eye on emerging date particularly on inflation going forward and be nimble with policy making.”
"We do not expect any change in the repo rate or stance by MPC. The reason is that inflation for September and October will be above 5 per cent, and the present low inflation is due to the base effect. Besides, core inflation is inching upwards," said Madan Sabnavis, Chief Economist, Bank of Baroda.
MPC's Decision Would Add Confidence Among Home Buyers, Says Sundream Group CEO
Harsh Gupta, CEO, Sundream Group, explained that the MPC's decision will help add to the confidence among buyers, specifically during the festive season when commercial real estate is seeing good sales. "A stable repo rate provides reliability and confidence to home buyers. This stability directly impacts the growth of the real estate sector, which in turn plays a crucial role in contributing to India's GDP and future growth prospects," he noted.
RBI MPC's Decision Helps All Stakeholders In Real Estate Sector: Excentia Infra Director
Manit Sethi, Director, Excentia Infra, welcomed the RBI MPC's decision on benchmark interest rates. "It aligns with the country's growth prospects and rapid infrastructural development. This stability benefits all stakeholders in the real estate sector—homebuyers, developers, and financial institutions alike and encourages real estate development in tier 2 cities," the executive said.
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