RBI Likely to Hold Rates Amid Inflation Concerns Post-Election Results

Experts suggest RBI is unlikely to cut the benchmark interest rate in its upcoming policy review as economic growth is steady and inflation concerns persist. The Monetary Policy Committee, led by Governor Shaktikanta Das, will make its decision post-Lok Sabha election results. The meeting is scheduled for June 5-7.


PTI | Mumbai | Updated: 02-06-2024 15:21 IST | Created: 02-06-2024 15:21 IST
RBI Likely to Hold Rates Amid Inflation Concerns Post-Election Results
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Experts predict that the Reserve Bank of India (RBI) will not be cutting the benchmark interest rate at its forthcoming monetary policy review. Despite some improvements in the economic landscape, lingering concerns about inflation make rate cuts unlikely.

The Monetary Policy Committee (MPC), chaired by Governor Shaktikanta Das, is slated to meet from June 5 to 7, just days after the Lok Sabha election results are declared. The final decision is expected to be announced on June 7, Friday.

The central bank has maintained the repo rate at 6.5 percent since February 2023. This upcoming meeting could mark the eighth consecutive time the RBI has held rates steady, emphasizing inflation control amid economic growth.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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