RBI Monetary Policy 2023: The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) began a three-day meeting regarding the future course of monetary policy on Tuesday, 6 June 2023. Tomorrow, the meeting will conclude.
On Thursday, June 8, 2023, at 10 a.m., Governor Shaktikanta Das of the Reserve Bank of India (RBI) will hold a press conference to announce the results of the second semi-monthly monetary policy meeting of fiscal year 2024. The press conference will be broadcast live at 12:00 p.m.
According to a number of reports by analysts and economists, the policy repo rate may remain unchanged at 6.5 percent this year in order to promote a progressive decline in inflation. In addition, the policy position may be maintained as “Withdrawal of Accommodation” by the MCP panel members. This means that the RBI’s Monetary Policy Committee will remain in “pause mode” and there will be no change in interest rates for the foreseeable future.
RBI Monetary Policy 2023
The previous RBI Monetary Policy review meeting was conducted on April 6, 2023, and the repo rate was maintained at 6.50 percent. In addition, the reverse repo rate was fixed at 3.5%. The decision was in line with the objective of evaluating the past rate increases.
In addition, he anticipates that the central bank will reduce inflation projections for FY24 and possibly increase GDP growth forecasts.
The central bank projected in April that retail inflation would moderate to 5.2% in FY24, while GDP growth for the year was projected to be 6.5%.
SBI Research stated that inflation projections for FY24 could be lowered, and as growth remains robust, the possibility of a growth upgrade for FY24 in June policy appears imminent.
According to the National Statistical Office’s (NSO) most recent projections, India’s real GDP growth for 2022-23 was 7.2%, which was higher than the 7% that was anticipated.
Sonal Badhan, Economist at Bank of Baroda, also anticipates that RBI will maintain the status quo and maintain the current interest rates.
We also anticipate no shift in posture or future rate increases. We expect the earliest conceivable rate cut to occur in October 2023. The RBI’s CPI forecast for FY24 could be revised downward by 10-20 basis points. “However, GDP projections are expected to remain unchanged,” said Badhan.
When and Where Is the Live Broadcast of the Policy for 2023?
The live broadcast of the RBI Monetary Policy 2023 press conference can be viewed on the Reserve Bank of India’s official YouTube channel.