look news india
The Reserve Bank of India (RBI) may once again cut the major policy rate repo by up to 0.25 percent in its monetary review meeting this week. The central bank has the option to cut interest rates due to a decline in inflation. After the announcement of tariffs by the US, major challenges have arisen for the global economy.
The 54th meeting of MPC will start from 7 April.
In such a situation, there is a need to promote economic development on the local front. In February, the RBI Monetary Policy Committee (MPC) headed by Governor Sanjay Malhotra reduced the repo rate to 6.25 percent. This was the first cut in the repo rate since May 2020 and the first increase in two and a half years. The 54th meeting of MPC will begin on 7 April. The results of the meeting will be declared on 9 April.
Who will attend RBI’s MPC meeting?
Apart from the RBI Governor, the MPC consists of two senior central bank officials and three people appointed by the government. The Reserve Bank of India (RBI) has kept the repo rate (short -term lending rate) unchanged by February 2023 at 6.5 percent. The RBI last reduced the repo rate during Kovid (May 2020) and after that it was gradually reduced to 6.5 percent.
The policy to be announced this week will come at a time when many things are happening all over the world and in the economy. The tariffs imposed by the US will have some effect on the possibilities of development and currency, which the MPC will have to consider beyond its general assessment of the economy status. However, it seems that inflation chances are softening and liquidity is stabilizing, this time the repo rate may be reduced by 0.25 percent. The central bank is also expecting that it will make his stance more generous, which may mean that interest rates will be further cut this year.