The Central Reserve Bank is presenting the review of its Monetary Policy Committee today. There is a possibility that the central bank may maintain status quo on the policy rate in view of inflationary pressures.
RBI Monetary Policy 2021: Will the interest rate increase or decrease? What will be the effect on you, RBI will announce today.
The Reserve Bank of India (RBI) will announce its bi-monthly monetary policy decision on Friday, August 6. The decision on the three-day meeting of the Monetary Policy Committee, which began on Wednesday, under the chairmanship of RBI Governor Shaktikanta Das, will come today.
There is a press conference of the RBI Governor at 10 am today. The RBI governor will announce today whether any decision has been taken in the meeting. Let us tell you that the Monetary Policy Committee meets every two months to decide the policy interest rates. It is expected that in this meeting, the Reserve Bank can consider making the loan cheaper.
The Central Reserve Bank is going to present its Monetary Policy Committee review (RBI MPC Review) on Friday . The central bank will present the bi-monthly monetary policy review at 10 am.
There is a possibility that the central bank may maintain status quo on the policy rate in view of inflationary pressures. Prior to this, for several sessions, the RBI has been keeping the key interest rates stable.
Last time RBI Governor Shaktikanta Das had said that the economic activities in the country are gaining momentum, due to which the bank is keeping the repo rate stable and this situation will continue as long as it is necessary.
RBI announcement today
Let us inform that at present the repo rate is at 4 percent and the reverse repo rate is at 3.5 percent.
Earlier in the week, economic analysts also said that the Reserve Bank of India may keep key policy rates unchanged amid fears of a third wave of the covid-19 epidemic and rising retail inflation. Experts had said that the central bank will look at the macroeconomic situation for some more time before taking any decisive action.
Apart from this, rates of GDP growth and CPI inflation (consumer price index or retail inflation) will also be monitored. Last time the Reserve Bank had reduced the economic growth forecast from 10.5 percent to 9.5 percent in the current financial year. At the same time, the CPI inflation for the financial year 2021-22 has been estimated at 5.1%.
No change in interest rate for 6 consecutive MPCs – RBI POLICY.
Explain that the six-member MPC, headed by the Governor of the Reserve Bank, takes decisions on important policy rates.
The central bank had kept the prime interest rate unchanged at four per cent in the June policy meeting. This was the sixth time in a row that the MPC maintained the status quo on the interest rate.
M Govinda Rao, Chief Economic Advisor, Brickwork Ratings, said the MPC has kept key policy rates unchanged from May 2020. He further said, we expect RBI to continue to support the recent revival by keeping the MPC repo rate at 4 per cent. We also hope that the central bank will give a warning and emphasize the need to monitor the situation closely.