RBI will announce monetary policy today, will there be relief from expensive loans?

By Sudhakar Yadav February 8, 2024 8:50 AM IST
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The decisions of the Monetary Policy Committee (MPC) meeting of the Reserve Bank of India, which is going on from February 6, will be announced by RBI Governor Shaktikanta Das on Thursday (February 8). This is the last MPC of the current financial year and the first MPC of the calendar year 2024.

It is believed that RBI can keep the repo rate unchanged in this meeting also. If this happens, it will be the sixth time when the central bank has not made any change in the monetary policy rates to achieve the 4 percent inflation figure.

Focus will be on inflation

Brokerage house Nuvama has said that in the new monetary policy, the interest rate can be kept as it is by RBI. However, RBI can keep the monetary policy stance soft and make it neutral, which is currently ‘Withdrawal of Accommodation’. Also said that we are not expecting any timeline from RBI regarding reduction in interest rates. RBI’s focus will be on taking the inflation rate to 4 percent. At the same time, the Centre’s stance on liquidity front will be interesting to watch. Nuwama has given some reasons behind his prediction.

  1. Core CPI is less than 4 percent.
  2. Weak domestic private consumption and exports.
  3. Fiscal policy has been tightened in the interim Budget 2024.

previous monetary policy

There was no change in interest rates even in the monetary policy issued by RBI in December. The repo rate was kept as it was. Also, 6 to 5 MPC members had decided to keep the policy stance as ‘Withdrawal of Accommodation’. Also, the GDP growth estimate for the financial year 2023-24 was reduced to 7 percent.

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