On Wednesday, Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) will start its 3-day meeting in Mumbai. The aim behind meeting is to determine the coverage of interest rates. The meeting held under the chairmanship of RBI Governor Sanjay Malhotra. The results of the meeting set to announced on Friday, June 6.
RBI MPC Conducts Meeting over inflation rates
This meeting comes at a time while inflation in country has been regularly declining. India’s retail inflation eased to 3.16 % in April, down from 3.34 % in March, as per official data.
With inflation now under 4 % mark, the MPC is expected to take into account whilst deciding the policy stance. According to a report by SBI, the RBI expected to announce a 50 basis factors (bps) cut in the repo rate. It assist to revive the credit cycle and support average financial growth.
Final Results will Out on 6 June
The report said that the full price reduce all through the easing cycle need to pass up to 100 bps. “We expect a 50-basis factor charge cut in June’25 policy as a big rate cut need to reinvigorate a credit cycle,” SBI mentioned in its file. In the final MPC meeting held on April 7, 8, and 9, the RBI had announced a 25-basis-point cut in the repo rate, reduce it from 6.25 % to 6 %.
Governor Sanjay Malhotra said, “After a detailed evaluation of the evolving macroeconomic and monetary situations and outlook, the MPC voted to reduce the policy repo fee by 25 basis factors to 6 % with immediate effect.” That pass in April accompanied any other 25 bps cut in February while the repo fee became reduced from 6.5 % to 6.25 %.
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