RBI Monetary Policy Meeting: The Reserve Bank of India's three-day monetary policy committee (RBI MPC) meeting will conclude on October 9, and Governor Shaktikanta Das will announce the rate-setting panel's decision at 10 am.
Notably, this is the first meeting of the six-member RBI MPC after half the members were changed last week.
The Centre appointed three new members to the RBI's six-member monetary policy panel earlier this month. The new members are Saugata Bhattacharya, an economist; Dr Nagesh Kumar, Director and Chief Executive of the Institute for Studies in Industrial Development; and Professor Ram Singh, Director of the Delhi School of Economics, University of Delhi. They join RBI Governor and MPC Chairperson Das, Rajiv Ranjan, as Executive Director and Michael Debabrata Patra as deputy Governor.
Notably, in its last nine consecutive meetings since February 2023, the central bank has kept the repo rate unchanged at 6.50 per cent, with a view to balance inflation and economic growth.
This time, expectations are varied, with many looking for signs that may indicate a shift in the RBI's stance. Many think some easing could only be possible in December.
In an off-cycle meeting in May 2022, the MPC raised the policy rate by 40 basis points (bps), which was followed by rate hikes of varying sizes in subsequent meetings until February 2023. Cumulatively, between May 2022 and February 2023, the repo rate was raised by 250 bps.
Nine out of 10 economists polled by Mint said the RBI MPC may introduce a 25 bps rate cut, but only in December. For the current meeting, the consensus was that the panel is likely to keep the benchmark repo rate unchanged at 6.5 per cent for the 10th successive time.
In terms of policy stance, just half the economists polled by Mint expect the MPC to retain its stance of ‘withdrawal of accommodation’, while the other half expects an upgrade to ‘neutral’ for the first time in two years since the rate hike cycle started.
(With inputs from Agencies)
