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RBI monetary policy LIVE: The Reserve Bank of India’s (RBI’s) six-member monetary policy committee (MPC), headed by Governor Shaktikanta Das, is scheduled to announce the outcome of its bi-monthly monetary policy review today. The RBI is expected to hold interest rates after a three-day meeting of its MPC, despite rising inflationary pressures in the economy and the depreciation of the rupee. A revision of its projection for inflation for the second half of the financial year and the full year looks likely, given the twin challenges from a depreciating rupee and elevated international prices of commodities.
The big takeaway from the RBI, however, is likely to be any move to balance the huge liquidity overhang in the banking system, including possibly trimming a government bond-buying programme.
Retail inflation in August marginally eased to 5.3%, staying within the RBI’s comfort zone for a second month, while WPI-based inflation surged to 11.39 per cent in August due to costlier manufactured goods.
All 30 economists surveyed by Bloomberg expect the MPC to leave the repo rate unchanged at four per cent today.
The RBI is expected to maintain the status quo on the benchmark repo rate — the rate at which the central bank lends short-term funds to banks — at 4 per cent.
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