RBI Monetary Policy LIVE: RBI MPC expected to keep repo rate unchanged; announcement at 10 am | Economy & Policy News

“The recent inflation data and the outlook for prices of food and commodities had suggested a status quo on the rates and stance in the upcoming June 2024 monetary policy review,” said Aditi Nayar, Chief Economist, Head of Research and Outreach at ICRA.

Since June 2022, the RBI has maintained its hawkish stance of “withdrawal of accommodation.” Most market pundits don’t expect a change to the relatively hawkish stance just yet.

The RBI is likely to maintain its projections of 7 per cent gross domestic product growth and 4.5 per cent average inflation in the financial year through March 2025. 

Market analysts expect to see the repo rate, the rate at which the RBI lends money to commercial banks, remain unchanged at 6.5 per cent.  According to a poll by Bloomberg, economists expect the central bank to maintain the repo rate at 6.5 per cent for the eight consecutive time.

In the previous MPC meeting, the RBI kept the repo rate unchanged at 6.5 per cent. This was  the seventh consecutive time the rate had been kept steady by the panel.

The RBI MPC meeting for June 2024 is taking place from June 5 to June 7, 2024. The results, including the official policy decisions, will be announced st 10 am today.