RBI MPC Meeting: The Monetary Policy Committee meeting of the Reserve Bank of India will run from August 8 to 10 under the chairmanship of RBI Governor Shaktikanta Das. During this many important issues will be discussed.
The RBI governor will pronounce the verdict on August 10. Explain that MPC meeting is organized every two months. 6 members attend the meeting. The main objective of the committee is to determine the policy rate needed to achieve the inflation target.
Repo rate stable expected
Experts believe that this time the MPC will not make any change in the repo rate. There was no revision in rates in the meeting held in April and June also. The repo rates were last increased in February. Currently the rates are 6.50%. Explain that the increase in the repo rate has a direct impact on the loan and EMI.
CPI inflation forecast may increase
RBI may raise its CPI inflation forecast for FY2024 to 2030. Pankaj Pathak, Fund Manager Fixed Income, Quantum AMC says, “We expect RBI to retain its policy stance. Its CPI inflation forecast for FY2024 may be extended to 2030. Basis points are around 5.3%-5.4%.”
Expectation from MPC meeting regarding inflation
The prices of food items may increase continuously across the country. The cost of vegetables has become a big problem for the middle class family. Retail inflation based on CPI has touched a three-month high of 4.81% in June.
However, it is still below the limit of 6% set by RBI. According to Deepak Jasani, head of retail research at HDFC Securities, inflation will continue to pick up in July and August. If the Nino pattern continues in the second half of the monsoon, inflation will remain the same till the end of this year.
