RBI’s MPC meeting kicks off today as repo rate stays unchanged

The RBI Monetary Policy Committee (MPC) meeting begins today. The repo rate is widely expected to stay at 6.5%. This would mark the 11th consecutive time the rate remains unchanged.

Both the State Bank of India and HDFC Bank reports support this expectation, linking the decision to recent GDP data. With economic growth slower than anticipated, experts believe the RBI is maintaining the rate to keep inflation under control.

However, there is growing speculation about a potential rate cut in the February policy meeting. HDFC Bank’s report highlights the weaker GDP data as a key factor that could prompt this shift. If the RBI lowers rates, it would signal a change in policy stance, aiming to boost economic activity.

Economists and investors are closely monitoring the MPC meeting for any hints of such changes. They hope to see a clearer policy direction that could impact inflation, growth, and investment.

In conclusion, while today’s meeting is expected to maintain the current repo rate, all eyes are on the future. A rate cut in February could mark a significant shift in RBI’s strategy.