look news india
New Delhi, 06 October (Hindustan Reporter). The first review meeting of the three-day bi-monthly reconstituted Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) will begin on October 7, which will continue till October 9. The decision of this meeting to be held under the chairmanship of RBI Governor Shaktikanta Das will be announced on October 9. However, this time too there is no possibility of change in the policy interest rate.
Economic experts said on Sunday that RBI will not make any change in the policy interest rate this time too. Experts say that this time also the Monetary Policy Committee will not follow the current situation of Israel-Iran war and the US Federal Reserve, which has cut the benchmark rates by up to 0.5 percent. Apart from this, the Reserve Bank will also not follow the central banks of some other developed countries, which have cut interest rates. However, experts believe that there is scope for some relaxation in this in December.
Experts say that in the MPC meeting held last August, RBI had not made any change in the policy interest rate repo rate for the 9th consecutive time. This time too, there is no expectation of change in the policy interest rates and repo rates. Experts say retail inflation is still a matter of concern, while the West Asia crisis is likely to worsen, which will impact crude oil and commodity prices. In such a situation, there is little scope for rate cut this time.
What is policy rate i.e. repo rate?
Repo rate is the rate at which the Reserve Bank lends money to commercial banks in case of any shortage. RBI repo rate is used by the monetary authority to control inflation. RBI has kept the repo rate unchanged at 6.5 percent from February 2023. The Reserve Bank had last increased the policy interest rate repo rate by 0.25 percent, which is currently at 6.50 percent. Before Covid-19, the repo rate was at 5.15 percent on February 6, 2020.