The Reserve Bank of India (RBI’s) Monetary Policy Committee (MPC) meeting will begin from today – June 6, 2023. The second bi-monthly MPC meet of FY24 will last for three days and its outcome will be announced on June 8, 2023.
RBI Governor Shaktikanta Das on June 8, will announced the decision taken by MPC in the light of several internal and macro-economic factors. However, as per the market consensus, the rate setting panel is expected to keep the repo rate unchanged even this time.
Based on the outcomes of the last MPC, the rate setting panel of the RBI kept the repo rate unchanged at 6.50 per cent and emphasised how the pause may only be for one time. However, based on several factors, this time again, analysts expect the RBI MPC’s outcome to be in favour of a pause.
When it comes to repo rate, RBI’s MPC has already upped the rates by a cumulative 250 basis points (bps) since May 2022. Announcing the same in the last MPC meeting, RBI Governor Das also emphasised that inflation continues to be a concern and the central bank’s fight against it also continues.
As far as inflation goes, the retail inflation numbers have been good. Based on consumer price index (CPI), the former has come down to 4.7 per cent in April, which is also below the central bank’s upper tolerance limit of 6 per cent. Even CPI inflation in March was at 5.66 per cent, signalling that both inflation and growth may be moving alongside.
