RBI’s rate-setting panel starts monetary policy discussion

Mumbai, April 3

The Reserve Bank’s rate-setting panel on Wednesday started its three-day deliberations on the next set of monetary policy amid expectations that the central bank would once again keep the key interest rate unchanged and focus more on inflation control as concerns over economic growth is abating.

The decision taken at the meeting of the Reserve Bank Governor Shaktikanta Das-headed Monetary Policy Committee (MPC) will be announced on Friday (April 5). It is the first bi-monthly monetary policy of 2024-25. A total of six MPC meetings are scheduled for the fiscal year beginning April 1, 2024.

Last rate hike in February ’23

• The Reserve Bank of India (RBI) last hiked the repo rate to 6.5% in February 2023 and since then it has held the rate at the same level in its last six bi-monthly policies.
• Experts believe the central bank is likely to maintain the status quo on key policy rate in its April 5 policy amid strong economic growth

The Reserve Bank of India (RBI) last hiked the repo rate to 6.5 per cent in February 2023 and since then it has held the rate at the same level in its last six bi-monthly policies.

Experts said the MPC may take cues from the central banks of some major economies, such as the US and the UK, which are apparently in wait-and-watch mode on interest rate cuts.

“We believe the (monetary policy) stance should continue to be withdrawal of accommodation,” said a report of the country’s largest lender SBI. On expectations from the RBI, Group CEO of Housing.com Dhruv Agarwala said the central bank is likely to maintain a status quo on key policy rate in its April 5 policy amid strong economic growth.