Wed Oct 09 03:41:50 UTC 2024: ## RBI MPC Meeting: Repo Rate Likely to Stay Steady, Focus on Inflation

**MUMBAI, INDIA**: The Reserve Bank of India (RBI) is expected to maintain the repo rate at its current level of 6.5% following a three-day Monetary Policy Committee (MPC) meeting concluding today. Despite calls for a rate cut from various industries, including real estate, the MPC is likely to prioritize controlling inflation, which remains a concern.

The MPC meeting saw the appointment of three new external members: Ram Singh, Saugata Bhattacharya, and Nagesh Kumar. This comes as the global economic outlook is clouded by uncertainties, including a potential worsening of the Western Asian crisis which could impact oil and commodity prices.

While experts predict no change in the repo rate this time, there is a possibility of a 0.25% reduction in December 2024 and February 2025. This decision is based on factors like slower GDP growth in the first quarter of 2024 and subdued retail inflation in the second quarter. The MPC’s focus will remain on ensuring the consumer price index (CPI)-based retail inflation remains within the target range of 4% (plus or minus 2%).

The MPC has not changed the repo rate for nine consecutive meetings. The repo rate, which is the rate at which the RBI lends to banks, impacts the cost of borrowing for individuals and businesses. A higher repo rate leads to increased interest rates on loans, including home loans, car loans, and personal loans, directly impacting EMIs.

The RBI is expected to announce its monetary policy decision and provide details of the MPC’s decisions later today.

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