The BRICS TimesRBI’s Monetary Policy Committee review meeting begins today, Wednesday, December 3. Will the committee decide to change the Repo Rate this time or keep it stable?
The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) review meeting starts today, Wednesday, December 3. This crucial session will continue until December 5. The meeting is being chaired by RBI Governor Sanjay Malhotra.
The committee will make a decision regarding the Repo Rate. The outcomes will be announced by the committee on December 5. A report published in Hindustan News cites an SBI Research report. This report suggests that the situation for a rate cut is currently unlikely.
SBI Research Report
According to a report from SBI Research, there were earlier expectations. It was estimated that the RBI might make a slight cut of 25 basis points in the Repo Rate. However, considering the current situation, this expectation now seems dim.
The report highlights strong GDP growth in the July–September quarter. Given the existing economic conditions, no change in the Repo Rate is anticipated. The report also informed that several global economies are maintaining their Repo Rate in a stable position. This means they are not making any changes to their policy rate.
A Repo Rate Cut Might Still Happen
A CareEdge credit rating company report offers a different view. It states that the country’s inflation reached a ten-year low of 0.3 percent in October. This level is far below the target of 4 percent. Based on this, a cut in interest rates can be hoped for.
The report further mentioned the possibility of a rate cut. Considering the fall in inflation and robust GDP growth, the RBI might announce a 0.25 percent Repo Rate cut.
Akshay Didwaniya