The central bank last raised the repo rate to 6.5 percent in February 2023.
New Delhi: Retail inflation has crossed the central bank's upper tolerance limit. In this situation, the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) met from Wednesday in the hope of keeping interest rates unchanged. The decision taken by the six-member Monetary Policy Committee headed by RBI Governor Shaktikanta Das will be announced on Friday. Shaktikanta Das' term as RBI Governor ends on December 10. Before that, this is the last Monetary Policy Committee meeting under his leadership.
Incidentally, the government has given the RBI the task of ensuring that consumer price index (CPI)-based inflation remains at 4 percent with a margin of 2 percent on both sides. The Reserve Bank has kept the interest rate (repo rate) unchanged at 6.5 percent since February 2023. According to experts, a change in interest rates is possible only in 2025. As the food market rises, the overall rate of retail price inflation increased again in October. The Central Statistics Office said that the retail inflation rate in October was 6.1 percent. The previous month, i.e. in September, the retail price inflation rate was 5.49 percent. It is to be noted that in October 2023, the consumer price index was 4.87 percent. In September, the consumer price index was 5.02 percent. According to the National Statistics Office, food price inflation increased by 10.87 percent in October, which was 9.24 percent in September. And it was 6.61 percent in October last year. Moreover, India's economic growth fell to a two-year low of 5.4 percent in the July-September quarter of the current fiscal year due to weak performance in the manufacturing and mining sectors. The July-September GDP of the 2023-24 fiscal year grew by 8.1 percent.
The central bank last raised the repo rate to 6.5 percent in February 2023. It has remained at that level since then. The RBI had kept the repo rate unchanged in its last bi-monthly review (October) despite the risk of high inflation in food items. A section of economists say, “With the repo rate unchanged, housing demand is expected to remain stable. Especially in the mid-range and luxury segments, stable interest rates will encourage. Both developers and buyers will benefit.”
The other members of the Monetary Policy Committee, headed by RBI Governor Shaktikanta Das, are Nagesh Kumar, Director and Chief Executive of the Institute for Studies in Industrial Development in New Delhi, economist Saugat Bhattacharya, Director of the Delhi School of Economics Ram Singh, RBI Executive Director Rajiv Ranjan and RBI Deputy Governor Michael Debabrata Patra.
New Delhi: Retail inflation has crossed the central bank's upper tolerance limit. In this situation, the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) met from Wednesday in the hope of keeping interest rates unchanged. The decision taken by the six-member Monetary Policy Committee headed by RBI Governor Shaktikanta Das will be announced on Friday. Shaktikanta Das' term as RBI Governor ends on December 10. Before that, this is the last Monetary Policy Committee meeting under his leadership.
Incidentally, the government has given the RBI the task of ensuring that consumer price index (CPI)-based inflation remains at 4 percent with a margin of 2 percent on both sides. The Reserve Bank has kept the interest rate (repo rate) unchanged at 6.5 percent since February 2023. According to experts, a change in interest rates is possible only in 2025. As the food market rises, the overall rate of retail price inflation increased again in October. The Central Statistics Office said that the retail inflation rate in October was 6.1 percent. The previous month, i.e. in September, the retail price inflation rate was 5.49 percent. It is to be noted that in October 2023, the consumer price index was 4.87 percent. In September, the consumer price index was 5.02 percent. According to the National Statistics Office, food price inflation increased by 10.87 percent in October, which was 9.24 percent in September. And it was 6.61 percent in October last year. Moreover, India's economic growth fell to a two-year low of 5.4 percent in the July-September quarter of the current fiscal year due to weak performance in the manufacturing and mining sectors. The July-September GDP of the 2023-24 fiscal year grew by 8.1 percent.
The central bank last raised the repo rate to 6.5 percent in February 2023. It has remained at that level since then. The RBI had kept the repo rate unchanged in its last bi-monthly review (October) despite the risk of high inflation in food items. A section of economists say, “With the repo rate unchanged, housing demand is expected to remain stable. Especially in the mid-range and luxury segments, stable interest rates will encourage. Both developers and buyers will benefit.”
The other members of the Monetary Policy Committee, headed by RBI Governor Shaktikanta Das, are Nagesh Kumar, Director and Chief Executive of the Institute for Studies in Industrial Development in New Delhi, economist Saugat Bhattacharya, Director of the Delhi School of Economics Ram Singh, RBI Executive Director Rajiv Ranjan and RBI Deputy Governor Michael Debabrata Patra.
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