RBI MPC Begins Today as Policymakers Weigh Inflation, Crude Risks
A poll of 10 economists and treasury heads expects the central bank to hold rates as inflation risks stay elevated.
- The Reserve Bank of India is expected to keep its benchmark repo rate unchanged during the policy review between August 3 and August 5, according to a poll of 10 economists facing elevated inflation risks.
- Inflationary pressures are largely supply-driven from external shocks like geopolitical tensions, making monetary policy potentially inappropriate as a response tool. Aditi Nayar, chief economist at ICRA, said "as of now, trimmed core inflation remains benign and suggests a status quo is the best policy option."
- Governor Sanjay Malhotra reiterated that inflation remains the central bank's foremost priority while assessing evolving risks from monsoon developments and geopolitical disruptions. The RBI is expected to maintain a hawkish pause, balancing resilient domestic growth with supply-led inflation.
- Despite expectations of a pause in August, the majority of respondents see the policy rate moving higher over the course of FY27. Most participants expect at least two rate hikes during the fiscal year if inflationary pressures intensify.
- On liquidity management, the majority of respondents do not expect major measures in the August policy. Gaura Sengupta, economist at IDFC FIRST Bank, said "no, but measures are expected closer to September when liquidity infusion picks up.
13 Articles
13 Articles
RBI MPC begins today as policymakers weigh inflation, crude risks
The Reserve Bank of India's Monetary Policy Committee begins its meeting this week. Market participants widely expect the benchmark repo rate to remain unchanged. Experts believe the central bank will focus on domestic inflation and growth. Global uncertainties and elevated crude oil prices are closely monitored. Future policy decisions will consider these evolving domestic and external factors.
RBI MPC meeting begins today: Will repo rate remain unchanged despite global rate hikes?
The RBI's Monetary Policy Committee has begun its three-day meeting with economists largely expecting the repo rate to remain unchanged. Markets will watch whether the central bank turns more hawkish on inflation, crude oil and the rupee.
RBI MPC Meeting Begins Today; Rate Pause Likely as Policymakers Balance Inflation Risks and Growth Concerns
Get latest articles and stories on Business at LatestLY. The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) begins its three-day policy meeting on Monday, with market participants widely expecting the central bank to keep the benchmark repo rate unchanged while maintaining a cautious stance amid evolving domestic inflation dynamics and global uncertainties. Business News | RBI MPC Meeting Begins Today; Rate Pause Likely as Policym…
RBI likely to hold rates in August, maintain hawkish tone as inflation risks persist: Economists
Mumbai, Aug 2: The Reserve Bank of India (RBI) is expected to keep the benchmark repo rate unchanged in its August monetary policy review on elevated inflation risks and pending the closure of the FCNR(B) deposit scheme, a poll of 10 economists and treasury heads has revealed. Most respondents anticipate that the central bank will maintain its policy stance as 'Neutral' while adopting a hawkish tone amid rising inflation risks from geopolitical …
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