A unanimous consensus among 59 economists surveyed by Reuters in late July predicts that the RBI will keep the repo rate unchanged at 6.50 per cent for the ninth consecutive meeting. Nevertheless, market participants are optimistic that the RBI might adopt a less stringent position on inflation. This expectation is fueled by the recent deterioration in global market sentiment and the high probability of an interest rate cut by the United States Federal Reserve in September.
A Business Standard poll earlier indicated that economic experts anticipate that the RBI will maintain this status quo for the ninth consecutive policy review. They cited ongoing inflation and food prices as factors likely influencing this decision.
The commitee evaluates the major economic metrics such as inflation and growth figures. After this, the MPC takes a decision on whether keep the repo rate unchanged, hike the rate to control inflation by making borrowing more expensive or cut the repo rate to making borrowing cheaper and stimulate growth.
The monetary policy statement will be broadcast live at 10 am tomorrow, August 8, on RBI’s social media handles and Business Standard’s homepage.
A unanimous consensus among 59 economists surveyed by Reuters in late July predicts that the RBI will keep the repo rate unchanged at 6.50 per cent for the ninth consecutive meeting. Nevertheless, market participants are optimistic that the RBI might adopt a less stringent position on inflation. This expectation is fueled by the recent deterioration in global market sentiment and the high probability of an interest rate cut by the United States Federal Reserve in September.
A Business Standard poll earlier indicated that economic experts anticipate that the RBI will maintain this status quo for the ninth consecutive policy review. They cited ongoing inflation and food prices as factors likely influencing this decision.
The commitee evaluates the major economic metrics such as inflation and growth figures. After this, the MPC takes a decision on whether keep the repo rate unchanged, hike the rate to control inflation by making borrowing more expensive or cut the repo rate to making borrowing cheaper and stimulate growth.
The monetary policy statement will be broadcast live at 10 am tomorrow, August 8, on RBI’s social media handles and Business Standard’s homepage.
