A year is structured into six bi-monthly assessments of the monetary policy by the central bank, along with the provision for out-of-cycle reviews during urgent situations.
In New Delhi, the Reserve Bank of India (RBI) is poised to reveal the outcome of its 3-day Monetary Policy Committee (MPC) meeting on Friday. Market analysts anticipate that the central bank may opt for another round of rate stability this time around.
In the preceding October announcement, the RBI had maintained the repo rates at 6.5 percent, marking the fourth bi-monthly monetary policy of the fiscal year. The MPC meeting, chaired by RBI Governor Shaktikanta Das from October 4 to October 6, resulted in a unanimous decision to retain the repo rate at 6.5 percent, considering prevailing economic conditions.
Governor Das highlighted that, in light of economic factors, the MPC projected a GDP growth rate of 6.5 percent for the financial year 2024.
During the Monetary Policy on August 10, the RBI had kept the repo rates steady at 6.5 percent. The Monetary Policy Committee, in its second bi-monthly meeting of FY24, unanimously chose to maintain a consecutive pause after a series of rate hikes in the preceding six policies. This marked the third consecutive instance of the RBI opting for a pause in interest rates.
The structure of a year involves six bi-monthly reviews of the central bank’s monetary policy, supplemented by the availability of out-of-cycle reviews for addressing urgent situations.
