Search
RBI’s MPC meet starts amid expectations of another rate hike
April 04, 2023
Reserve Bank Governor Shaktikanta Das-headed Monetary Policy Committee, during its three-day meeting (April 3, 5 and 6), will take into account domestic and global factors, before coming out with the first bi-monthly monetary policy for fiscal 2023-24.
The decision of the six-member rate-setting panel will be announced by the Governor on Thursday.
The central bank has already increased the repo rate by a total of 250 basis points since May, in a bid to contain inflation, though it has continued to remain above the RBI’s comfort zone of 6 per cent most of the time.
The two key factors which the committee is expected to deliberate on while firming up the next monetary policy are elevated retail inflation and the recent action taken by the central banks of developed nations, especially the US Federal Reserve, the European Central Bank, and Bank of England.
Having remained below six per cent for two months (November and December 2022), retail inflation breached the RBI’s comfort zone in January, warranting action by the central bank.
Important Links:
- 4-IN-1 Professional Diploma in Banking, Financial Services & Insurance (PDBFSI): https://tscfm.org/courses/4-in-1-professional-diploma-in-banking-financial-services-insurance-pdbfsi/