The RBI convened a three-day monetary policy review (RBI MPC Meeting) on December 6. On the morning of December 8, the RBI Governor will provide details of the choices made during the three-day MPC meeting. Setting the repo rate and managing inflation are the MPC’s primary duties. Credit rating agency and Bank of Baroda economists voiced optimism that the RBI would likely keep the repo rate at 6.5 percent during the MPC this time around as well. Additionally, it is anticipated that nothing will change in this regard during this fiscal year.
With the repo rate at 6.5 percent
Additionally, he stated that the RBI’s MPC will update the GDP estimate at its next meeting. The RBI will keep the repo rate at 6.5 percent, according to credit rating company Care Ratings. The repo rate is what banks borrow from the RBI. The economic prognosis has greatly improved, according to Care Ratings, with a robust increase in economic activity in the first half that resulted in a startling spike in GDP growth in the second quarter.
The pace of agricultural expansion is still sluggish.
The RBI may alter its previous growth projections for the 2024 fiscal year by 20 to 30 basis points. Specific difficulties still exist in a few areas, particularly about rural demand. Care Ratings states that the reason for the continued weak growth in agriculture is the lower-than-anticipated production from Kharif and Rabi sowing. Although the impact of inflation has decreased, food prices are still a serious worry. There is a chance that inflation may continue to rise as a result of the reduction in agricultural output.
GDP figures
The RBI is probably going to keep encouraging economic expansion even though it is still wary about inflation rising much above the MPC’s initial projection. “We estimate that RBI will not make any changes in its policy rates and stance,” stated Care Ratings. We don’t see the RBI raising rates any further this fiscal year. ‘GDP data for Q2FY24 is much higher than the MPC’s earlier prediction, and with persistent worries over different components of food inflation, we expect the MPC to raise the inflation rate by December 2023,’ stated Aditi Nair of ICRA Ltd. Will not be reviewing right away.
Read More: These smartwatches can be the perfect gift for the new year!
|
|
  Facebook Page |
         Click Here |
|  Twitter       |
          Click Here |
| Â Instagram |
         Click Here |
 on December 6. On the morning of December 8, the){kind=link}