07 October,2024 01:00 PM IST | Mumbai | mid-day online correspondent
Reserve Bank of India. File Pic
The Reserve Bank of India (RBI) is set to begin its three-day monetary policy meeting on Monday from October 7 to October 9, reported news agency ANI.
The Central Bank has maintained the status quo of the repo rate at 6.50 per cent for the past nine meetings. The RBI is continuing to maintain a cautious stance to balance inflation control and economic growth.
The Monetary Policy Committee (MPC) is expected to prioritise factors such as inflationary trends, global economic uncertainties, and domestic growth prospects to be prioritised. RBI Governor Shaktikanta Das heads the MPC, reported ANI.
The All India Consumer Price inflation in August was under the RBI's target band at 3.65 per cent, whereas, the food inflation stands at 5.65 per cent, which is above the RBI's medium-term target of 4 per cent, according to the Ministry of Statistics & Programme Implementation, reported ANI.
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Food inflation continues to be a challenge along with high fuel prices. Despite these inflationary pressures, the RBI continues to maintain the repo rate, mainly to support the economy following the pandemic.
However, external factors such as price hikes on crude oil due to tensions in West Asia are a major concern, which may drive the RBI to reconsider its current status.
Recently, the Central Government appointed three new members to the MPC. The Committee now includes three members from the RBI and three external members appointed by the Central Government, reported ANI.
The new external members are Prof. Ram Singh, Director, Delhi School of Economics; Dr. Nagesh Kumar, Director and Chief Executive, Institute for Studies in Industrial Development; and economist Saugata Bhattacharya, reported ANI.
Market participants and analysts are closely monitoring the meeting for guidance on future rate actions. While many anticipate that the central bank will continue its wait-and-watch approach, a surprise hike rate cannot be dismissed, reported ANI.
On September 18, the US Federal Reserve announced a steep 50 basis points interest cut after holding it steady for eight straight meetings.
The outcome of the MPC will be revealed on October 9 and will influence future monetary policies amid the shifting global economic landscape.
(With inputs from ANI)
