RBI MPC Meeting LIVE Updates: RBI Expected To Keep Repo Rate Unchanged; GDP Forecast, Inflation Forecast In Focus – News18

RBI MPC Meeting LIVE Updates: RBI Governor Shaktikanta Das will announce the repo decision at 10 am today, August 8, even as the Monetary Policy Committee’s 3-day meeting comes to an end on Thursday. According to analysts, the RBI MPC is likely to maintain the status quo on the key policy rate at 6.5 per cent for the ninth time, which remained unchanged for eight policy reviews consecutively since February 2023.

Apart from the interest rate decision, Das will also shed some light on the state of the economy. His words will be keenly watched amid global uncertainties in the Middle East and the US economic condition, including the US Fed’s position on interest rates.

The MPC is again expected to hold the repo rate steady for the ninth time on Thursday due to upside risks to inflation, especially food inflation.

In the previous policy review in June 2024, the RBI had raised the FY25 GDP forecast to 7.2 per cent from 7 per cent. The CPI inflation projected was kept the same at 4.5 per cent for FY25.

The SDF (standing deposit facility) currently stands at 6.25 per cent, while MSF (marginal standing facility) and Bank Rates are at 6.75 per cent. The SDF is the lower band of the interest rate corridor, while the MSF is the upper band.

“Food inflation risks continue to dominate in the near term. The RBI will be in no hurry to ease monetary policy given the headroom from robust growth in the backdrop of near-term inflation risks,” said Upasna Bhardwaj, chief economist of Kotak Mahindra Bank.

India’s CPI inflation rose to a four-month high of 5.08 per cent in June 2024 on the back of higher food prices. Inflation in the food basket rose to 9.36 per cent in June, against 8.69 per cent in May. It is the latest monthly data available. The CPI inflation data for July 2024 will be released on August 12.

Last week, the US Federal Reserve also kept its benchmark interest rate unchanged at 5.25-5.50 per cent. However, its Chair Jerome Powell also hinted at a rate cut in September. He said the reduction of policy rate could be on the table as soon as the next meeting in September. However, it, according to Powell, will depend upon the jobs data and inflation trend.