Mumbai: Reserve Bank of India (RBI) Governor Shaktikanta Das will announce the RBI Monetary Policy meeting outcome on Friday morning. The economists are of the view that the central bank would maintain a status quo on the benchmark interest rates.
RBI MPC Meeting 2024 updates
The RBI has not revised the key interest rate (repo) at 6.5 per cent since February 2023.
The economic experts believe that the central bank will maintain the status quo on interest rates as inflation remains a matter of concern. It may be noted that the European Central Bank and Bank of Canada have started decreasing their respective key rates.
RBI Governor Das will announce the MPC meeting decisions at 10 today. The Monetary Policy Committee started discussions on June 5.
With economic growth picking up pace, the MPC is expected to not go ahead with rate cuts.
Notably, SBI research paper expects the central bank to cut the repo rate in the third quarter of 2024-25 and “such rate cut cycle is likely to be shallow”.
The SBI Research expected inflation to stay below 5 per cent beginning October till the end of 2024-25. It may be noted that the Modi government has mandated the RBI to ensure retail inflation at 4 per cent with a margin of 2 per cent on either side.
Ashish Agarwal, Director, AU Real Estate expected that the repo rate will remain unchanged in June 2024.
“With consumer demand driving luxury housing, this move will support macroeconomic indicators and encourage new buyers to invest. As India’s economy grows, the real estate sector will play a significant role, making the current repo rate policy crucial in fuelling demand and contributing to the country’s growth,” Agarwal said.
Reserve Bank of India Governor Shaktikanta Das will announce the RBI monetary policy June 2024 on Friday. Economists believe that the RBI will refrain from going ahead with repo rate cut which has last changed in February 2024. Economy Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
