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RBI MPC meeting runs Aug 3-5, decision due Aug 5 at 10:00 a.m.
The repo rate is widely expected to stay at 5.25%, with the RBI also likely to keep its current inflation forecast near 5.1% for the financial year.
The Reserve Bank of India began its three-day Monetary Policy Committee meeting on Monday, with Governor Sanjay Malhotra scheduled to deliver the outcome on August 5. The RBI will announce its policy decision at 10:00 a.m., followed by Malhotra’s media address at 12:00 p.m., and both will be viewable via the RBI’s official channels, according to LiveMint Markets.
Economists surveyed by Bloomberg are broadly expecting the RBI to keep the repo rate unchanged at 5.25% amid heightened global uncertainty. The expected status quo comes even after consumer inflation picked up, though it remains within the RBI’s target range.
The RBI has forecast average inflation of 5.1% for the current financial year, and is widely expected to retain that projection without major revisions. At its June meeting, the RBI left the repo rate at 5.25% and kept the MPC stance “neutral.”
Alongside the policy rate, the RBI is reported to have maintained the standing deposit facility rate at 5% and the marginal standing facility rate and bank rate at 5.5%. In remarks on the global outlook, Malhotra cited ongoing West Asia conflict and uncertainty tied to disruptions to trade routes and supply chains, plus higher market volatility and cautious business sentiment.