New Delhi. The meeting of the monetary policy committee of the Reserve Bank started on June 5. After three days of meetings, on June 7, RBI Governor Shaktikanta Das is going to decide whether the repo rate should be cut or it should be kept at the current level.
However, experts believe that the Reserve Bank will not make any change in the policy rate this time too. According to SBI’s research paper, the retail inflation rate is expected to be around five percent in May and after that it will come down to 3 percent in July. After this, perhaps, i.e. in the next MPC meeting, the Reserve Bank may reduce the repo rate.
According to information received from experts, no change is expected in the repo rate i.e. interest rate in this meeting as well. This is the second meeting of the financial year 2024-25. Currently the repo rate is at 6.50 percent. RBI had not increased the interest rates even in the earlier meeting held in April. RBI had last increased the rates by 0.25% to 6.5% in February 2023.
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MPC meeting is held every two months.
RBI’s monetary policy committee meeting is held every two months. RBI governor Shaktikanta Das may keep the repo rate at the old level in the Reserve Bank’s monetary policy committee meeting being held today. This is the second monetary policy of this financial year.
Repo rate may be cut in the third quarter
According to SBI’s research paper, the central bank should stick to its decision to withdraw the neutral stance. The report titled ‘Introduction to MPC meeting’ expects that the RBI will cut the repo rate in the third quarter of the current financial year. ‘This cut is likely to be small.’ It also said that the Consumer Price Index (CPI) based inflation rate is expected to be close to 5 percent in May. After this, it will come down to 3 percent in July.
Who are the members of MPC?
RBI’s MPC has six members. It has both external and RBI officials. Along with Governor Das, RBI officials Rajiv Ranjan serves as executive director and Michael Debabrata Patra is the deputy governor. Shashank Bhide, Ashima Goyal and Jayant R Verma are external members. Let us tell you that the meeting of RBI’s Monetary Policy Committee is held every two months.
