RBI MPC Meeting 2023: The repo rate has increased from four percent to 6.50 percent.

New Delhi:

The bi-monthly review meeting of the Monetary Policy Committee of the Reserve Bank of India (RBI) is going to start from April 3. This meeting is going to last for three days.

After which this six meeting will end on April 6 with the decision of RBI Governor Shaktikanta Das regarding the policy rate.

During this, RBI can increase the Repo Rate.

RBI also decided to increase the next MPC by 0.25 percent amid retail inflation remaining above a satisfactory level of 6 percent and the aggressive stance of many central banks including the US Federal Reserve. Can do.

Focus will be on these aspects in MPC meeting

A decision will be taken after a comprehensive review of all domestic and international aspects related to monetary policy in the MPC meeting (RBI MPC Meeting 2023), the highest body for monetary policy determination.

During this, the retail inflation situation and the recent steps of major central banks like Federal Reserve, European Central Bank and Bank of England will also be analysed.

RBI increased the repo rate by 0.25 percent in February

RBI has adopted the stance of increasing the policy interest rate continuously from May 2022 to control inflation.

During this, the repo rate has increased from four percent to 6.50 percent.

The repo rate was also increased by 0.25 percent in the last MPC meeting held in the last month i.e. February.

Consumer Price Index ie CPI (CPI) based inflation has been at 6.52 percent in January and 6.44 percent in February.

This level of retail inflation is higher than the comfortable six per cent set by the RBI.

Repo rate may increase once again

Bank of Baroda Chief Economist Madan Sabnavis said, "With inflation remaining above 6 per cent for the last two months and liquidity now almost stable, it is expected that the RBI will once again cut the repo rate by 0.25 per cent." can increase.

Along with this, by keeping its stance stable, RBI can also indicate that the phase of rate hike is over.

Decision possible even on stopping the process of interest rate hike

DK Pant, chief economist of India Ratings and Research, is also of the opinion that the repo rate can be increased by 0.25 percent in the MPC meeting.

Along with this, he has also expressed the possibility of its final rate hike.

However, Ranen Banerjee, economic advisor at PwC India, believes that the MPC may also decide to stop the process of increasing the interest rate this time due to supply factors being the major reason behind inflation in India.

Let us tell you that this will be the first monetary review meeting (RBI MPC Policy Meeting) of the financial year 2023-24. RBI will organize a total of six MPC meetings in a financial year.