MPC of RBI expected to yet again pause repo rate at next bi-monthly review: SBI Research
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SBI Research in its latest report has said that the monetary policy committee (MPC) of the Reserve Bank of India (RBI) is expected to yet again pause the key repo rate at its next bi-monthly review scheduled in the first week of October. The meeting is scheduled for October 4-6. RBI typically conducts six bi-monthly meetings in a financial year, where it decides interest rates, money supply, inflation outlook, and various macroeconomic indicators.
It stated ‘Domestically, we believe at 6.50%, we are in for a prolonged pause as seasonality of inflation is tapering first. We believe the (RBI's) stance should continue to be withdrawal of accommodation as inflation is unlikely to tread below 5 per cent in rest of 2023-24.’
Further, on growth, it said the outlook continues to be strong. It mentioned ‘Spiraling oil prices should take a breather at these levels as vocal members of OPEC+ may not like to destabilize the markets further in the long run beyond $90/bbl having reached the optimal level where their production cost is adequately being compensated while also successfully having signalled to the world the power they wield over prices trajectory.’
