Mumbai (Maharashtra) [India], August 8 (ANI): RBI Governor Shaktikanta Das to deliver the monetary policy statement on Thursday at 10:00 am, following the Reserve Bank of India’s (RBI) three-day Monetary Policy Committee (MPC) meeting, the post-policy press conference scheduled to be telecast at 12:00 pm on the same day.
During this meeting, the RBI is set to announce its decisions on key policy matters, including the repo rate, which has been held steady at 6.5 percent since February 2023. Experts widely expect the repo rate to remain unchanged for the ninth consecutive bi-monthly policy review.
Inflation continues to be a significant factor influencing the RBI’s monetary policy stance. Despite core inflation being contained and a noticeable 15-20 percent drop in commodity prices, especially metals, from their 2024 peak, food inflation remains problematic. Experts emphasize that inflation in India still exceeds the RBI’s target range, making it unlikely for the central bank to cut rates until inflation aligns with the 4 percent target.
While a rate cut is not anticipated in the current meeting, there is speculation that the RBI may consider rate cuts in the October meeting if inflation trends improve.
Governor Shaktikanta Das has consistently emphasized the importance of monitoring food inflation closely, reiterating that the RBI is not in a hurry to make decisions on rate cuts. This cautious approach is reflected in the RBI’s recent actions and communications.
A recent report by the State Bank of India (SBI) forecasted that Consumer Price Inflation in India will hover around 5 percent for the financial year 2024-25, except for the months of September and October. This projection aligns with the cautious stance adopted by the RBI, highlighting the need for vigilance in managing inflationary pressures.
As the MPC meeting concludes, all eyes will be on Governor Das’s policy statement and the subsequent press conference to gain insights into the RBI’s assessment of the current economic landscape and its future policy trajectory. The decisions made today will have significant implications for India’s economic stability and growth in the coming months. (ANI)
