Reserve Bank may increase the repo rate by another 0.25 percent
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This will probably be the last hike in the interest rate hike cycle that began in May 2022. The bi-monthly review meeting of the Monetary Policy Committee (MPC) of the Reserve Bank is scheduled to begin on April 3. The three-day meeting will end on April 6 with a decision on the policy rate.
The Reserve Bank of India (RBI) is also likely to increase the repo rate by another 0.25 percent in the monetary review to be presented next week, amid retail inflation remaining above a satisfactory level of six percent and the aggressive stance of several central banks, including the US Federal Reserve. can decide. This will probably be the last hike in the interest rate hike cycle that began in May 2022. The bi-monthly review meeting of the Monetary Policy Committee (MPC) of the Reserve Bank is scheduled to begin on April 3. The three-day meeting will end on April 6 with a decision on the policy rate.
To control inflation, RBI has adopted the stance of increasing the policy interest rate continuously from May 2022. During this, the repo rate has increased from four percent to 6.50 percent. The repo rate was also increased by 0.25 per cent in the last MPC meeting held in February last. In the MPC meeting, a decision will be taken after a comprehensive review of all domestic and international aspects related to monetary policy.
During this period, the situation of high retail inflation and the recent steps of central banks of developed countries – US Federal Reserve, European Central Bank and Bank of England will also be analysed. Consumer Price Index (CPI) based inflation stood at 6.52 per cent in January and 6.44 per cent in February. This level of retail inflation is higher than the RBI’s comfortable level of six per cent. Axis Bank Chief Economist Saugata Bhattacharya told reporters recently, “I expect another final rate hike of 0.25 per cent.”
Madan Sabnavis, Chief Economist, Bank of Baroda said, “With inflation remaining above six per cent for the last two months and liquidity now almost neutral, it is expected that the RBI will once again cut the repo rate by 0.25 per cent.” can increase. Along with this, RBI can also indicate that the rate hike phase is over by declaring its stance as neutral. In total, RBI will organize a total of six MPC meetings in the entire financial year 2023-24. The central government has tasked the RBI to ensure that retail inflation remains within the range of four per cent (two per cent up or down).
Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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