RBI MPC Live Updates: Repo Rate Remains Unchanged At 6.5%, Inflation Expected To Rise To 4.8%
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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.
A Rate Cut Would Have Given A Golden Opportunity To Real Estate Sector: Expert
Ramani Sastri, Chairman and MD of Sterling Developers, said that the RBI has once again kept the repo rate unchanged, implying that there will be no immediate effect on home loan EMIs. “While the real estate sector has witnessed robust growth in recent years in the context of continuous demand, a rate cut would have given a golden opportunity to reinvigorate the real estate market with reduced interest rates ahead of the festive season, which is a crucial period for real estate sales,” Sastri said.
If Inflation Stays Low, We May See Rate Cuts In Future: BankBazaar's CEO
Adhil Shetty, CEO of BankBazaar.com, said, "Following the Reserve Bank of India's (RBI) monetary policy review, which concluded today, the committee has decided to keep the repo rate unchanged at 6.5% for the 10th consecutive time in a bid to control inflation. The central bank cited inflation numbers and geopolitical tensions as risks facing the economy's growth. However, in a departure from the previous few policy reviews, RBI has shifted its stance from being accommodative to neutral. Based on how the situation unfolds in the near future, this signals that the central bank is ready to go either way - if inflation stays low, we may see rate cuts in the future. However, at present, it is a wait-and-watch situation."
The Global Economy Has Remained Resilient: Das
RBI Governor Shaktikanta Das said, "The global economy has remained resilient and is expected to maintain stable momentum over the rest of the year amidst downside risks from intensifying geopolitical conflicts. In India, real gross domestic product (GDP) registered a growth of 6.7 per cent in Q1:2024-25, driven by private consumption and investment."
GDP Growth Expected At 7.2% For FY25: RBI
The Reserve Bank of India (RBI) has maintained its real GDP growth forecast for India at 7.2 per cent for the fiscal year 2025, announced by Governor Shaktikanta Das.
Banks, NBFCs Must Pay Continuous Attention To Issues: Das
RBI governor Shaktikanta Das said that the RBI is closely monitoring incoming data on credit cards, microfinance institution (MFI) loans, and unsecured loans. He stressed that banks and non-banking financial companies (NBFCs) must pay continued attention to issues such as inoperative accounts, mule accounts, and the cybersecurity landscape, among other factors. While NBFCs have experienced impressive growth in recent years, some are expanding aggressively without establishing robust underwriting practices. In some instances, retail targets are driving growth rather than actual demand. Although self-correction by NBFCs is the preferred approach, the RBI is vigilant and ready to take action if necessary.
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