look news india
Repo Rate: The results of the Lok Sabha elections are going to come on June 4. A day after this, the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) is going to meet between June 5 and June 7. It is being speculated that RBI will not make any change in the repo rate in this meeting. RBI has currently maintained the repo rate at 6.5 percent. Despite inflation related challenges, it will continue the policy of keeping interest rates stable for the time being.
There will be no change for the 8th consecutive time
If there is no change in interest rates on June 7 as expected, then this will be the 8th time to maintain the status quo. The country's economy is currently gaining momentum. In such a situation, the central bank wants to avoid tampering with the repo rate. The repo rate has been only 6.5 percent since February 2023. The 6-member MPC meeting headed by RBI Governor Shaktikanta Das will take a decision on this on Friday, June 7. Recently released data shows that the economy will grow at the rate of 8.2 percent in FY 2024.
RBI will be alert about inflation!
IDFC First Bank Chief Economist Gaura Sen Gupta said that heat can increase inflation. There is no possibility of reduction in the prices of food items at present. In such a situation, RBI will not want any change in the interest rate. It can move forward cautiously. RBI had also said earlier that it wants to keep the inflation rate around 4 percent.
There has been no major change in the economic situation
Bank of Baroda Chief Economist Madan Sabnavis said that the economic conditions have remained largely unchanged since the last policy. PMI and GST collection indicate that the economy is moving in the right direction. He said that the inflation figures are definitely a cause for concern. The scorching heat has affected the prices of vegetables.
