(Source: Poll of Polls)
RBI MPC Highlights: Stock Market Closes In Red After RBI Keeps Repo Rate Unchanged At 6.5%
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The Reserve Bank Of India (RBI) is all set to announce the outcome of the Monetary Policy Committee (MPC) meeting on Thursday. The regulator's MPC will convene to determine the benchmark interest rate and outline the future course of the Indian economy. The bi-monthly meeting, chaired by RBI Governor Shaktikanta Das, will take place from August 6-8, 2024. The central bank last raised the repo rate in February 2023 and has maintained the current key rates since then.
The committee members include Ashima Goyal, Jayanth R. Varma, Rajiv Ranjan, Shashanka Bhide, and Michael Debabrata Patra.
The committee will announce the final outcome on Thursday at approximately 10 AM. People can access press releases, meeting minutes, and other documents related to the MPC on the Reserve Bank of India's official website. Major updates about the meeting will also be available on the RBI's social media handles on X and LinkedIn.
"RBI is likely to pause as food price movements currently is imparting a positive bias to RBI 4.5 per cent projection...likely prospects of an excess rainfall in August and September could also have a debilitating impact on food prices," said a SBI research report It also expects the Reserve Bank to continue with its monetary stance of withdrawal of accommodation.
Goldman Sachs reports that the MPC is expected to maintain the policy rate at 6.5% during its meeting on August 8.
"We expect the RBI MPC to keep the policy repo rate unchanged at the Aug 8 meeting at 6.50 per cent, with a 4:2 vote in favour, retain the monetary policy stance of 'withdrawal of accommodation', sound relatively optimistic on growth, and continue to reiterate the commitment to the 4 per cent headline inflation target," it said.
The central bank conducts approximately six bi-monthly meetings each fiscal year to decide on interest rates, inflation outlook, money supply, and other economic indicators. Following the August MPC meeting, the following sessions are scheduled for October 7-9, 2024, December 4-6, 2024, and February 5-7, 2025.
In the previous MPC meeting, held June 5-7, the committee maintained the benchmark interest rate at 6.5 per cent, marking the eighth consecutive meeting in which the key rates were kept unchanged.
RBI's Decision To Maintain Policy Rate Aligns With Expectations: Expert
Saket Dalmia, President of India Sotheby's International Realty, said, "The RBI's decision to maintain the policy rate aligns with expectations, given the current inflation and global economic scenario. While the near-term outlook for global growth appears positive, the medium-term outlook faces challenges due to demographic shifts, climate change, geopolitical tensions, and fragmentations. Despite this, domestic economic activity remains resilient."
Steady Monetary Policy Ensures Stability In Real Estate Sector: Vestian's CEO
Shrinivas Rao, FRICS, CEO, Vestian, said, “RBI maintained status quo for the ninth consecutive time and kept the repo rate at 6.5 per cent. Sticky inflation, elevated food prices, and global macroeconomic uncertainty likely influenced this decision. A steady monetary policy for the past one and half years has ensured stability in the real estate sector, boosting demand for all asset classes."
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