Reserve Bank’s Monetary Policy Committee meeting starts tomorrow, this is the estimate of experts on repo rate hike
In view of the signs of softening in retail inflation and the need to boost growth, the Reserve Bank of India (RBI) may take a soft stance on increasing rates in its upcoming monetary policy review on Wednesday. Market experts estimate that after increasing the interest rates by 0.50 per cent for three consecutive times, now the central bank can increase the interest rates by 0.25 to 0.35 per cent this time.
MPC meeting to begin on Monday
The meeting of the Monetary Policy Committee (MPC) of RBI is starting from Monday. The results of the three-day meeting will be announced on December 7. Apart from domestic factors, the MPC may follow the lead of the US central bank Federal Reserve which has indicated a modest rate hike later this month.
Experts opinion, Reserve Bank will increase the repo rate by 0.25 to 0.35 percent
The Reserve Bank has increased the key policy rate repo by 1.90 per cent since May this year. However, despite this, the inflation rate has remained above a satisfactory level of six per cent since January. The Consumer Price Index (CPI) is primarily taken into account by the RBI while deciding the monetary policy. CPI is showing some signs of moderation but it is still above the satisfactory level of the central bank.
