RBI Rate Announcement Today: Shaktikanta Das to Brief Media

The Reserve Bank of India (RBI) will release its bimonthly monetary policy statement today, and traders in the financial market will be eagerly watching it.

Today, the Reserve Bank of India (RBI) will release its bimonthly statement of monetary policy.

SUMMARY
Today, the RBI will release its bi-monthly monetary policy statement. Friday’s scheduled news conference by RBI Governor Shaktikanta Das will include information about the MPC’s announcements.
The RBI’s bi-monthly three-day MPC meeting began on Wednesday, October 4, and its conclusion is due on Friday.

The Reserve Bank of India (RBI) will release its bimonthly monetary policy statement today, and traders in the financial market will be eagerly watching it. The monetary policy committee (MPC) announcements will be presented by RBI Governor Shaktikanta Das during his scheduled press conference on Friday.

The RBI’s bimonthly MPC meeting, which lasted three days and concluded on Friday, October 7, began on Wednesday, October 4. The central bank is anticipated to retain its hawkish pause and leave the repo rate unchanged at 6.5 percent.

The RBI maintained the repo rate at 6.50 percent in each of its most recent three meetings, which were also conducted in April, June, and August. The rate at which the RBI loans to other banks is known as the repo rate.

The central bank raised its prediction for CPI (consumer price index) inflation for FY24 from 5.1 to 5.4 percent at its most recent meeting. Additionally, Das mentioned that the predicted GDP growth for 2023–24 is 6.5% in the statements made during the previous Monetary Policy Committee meeting.

Shaktikanta Das predicted that there would be a “substantial increase” in headline inflation in the near future in his statements made following the policy meeting.

He reaffirmed his remarks at the June meeting: “Bringing headline inflation within the tolerance band is not enough; we need to remain firmly focused on aligning inflation to the target of 4.0 percent.”

According to Parijat Agrawal, head of fixed income at Union Asset Management Company, while headline inflation is predicted to decline in September compared to August, it would still be beyond the RBI’s comfort level.

“The recent increase in global bond yields and crude oil prices will put the MPC on the lookout for inflation-growth dynamics. At its upcoming meeting in October, the committee is anticipated to maintain its current attitude and rate structure, he added, according to Reuters.

Retail inflation in India decreased from 7.44 percent in July to 6.83 percent in August, although it still exceeded the RBI’s target range for a second consecutive month.

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