RBI's Monetary Policy Decision: Market Awaits Key Rate Announcement

The Reserve Bank of India's Monetary Policy Committee meeting concludes today, with expectations high as Governor Shaktikanta Das announces the central bank's decision on policy rates amidst inflationary concerns and global uncertainties. Analysts predict a shift in policy stance, though core interest rates may remain unchanged.

Today, the Reserve Bank of India (RBI) wraps up its three-day Monetary Policy Committee (MPC) meeting, as financial markets keenly await the decision on policy rates from Governor Shaktikanta Das. The RBI has maintained a steady repo rate at 6.50% over nine meetings, balancing inflationary fears with growth concerns.

Core challenges for the MPC include ongoing inflation, driven by food prices and global uncertainties. August data reveals a moderated CPI at 3.65%, within targets, yet food inflation remains high at 5.65%. Rising global oil prices, exacerbated by West Asia tensions, further complicate the inflation scenario.

The RBI remains firm in avoiding changes to the repo rate, focusing on post-pandemic economic recovery. Today's decision is critical, though analysts anticipate no change until December, despite potential shifts towards a neutral policy stance in response to climbing core inflation and geopolitical pressures.

(With inputs from agencies.)