Amid rising commodity prices globally and the need to control inflation at home, the Reserve Bank of India (RBI) is expected to maintain status quo on interest rates for the eighth time in a row in its upcoming bi-monthly monetary policy. Review later in the week according to experts.
The central bank had last cut the repo rate by 40 bps in May 2020 to boost demand in the COVID-hit economy. Since then, it has refrained from taking any action on interest rates. The six-member Monetary Policy Committee (MPC), headed by the RBI governor, is scheduled to meet for three days from October 6. The decision taken in the meeting will be announced by Governor Shaktikanta Das on October 8.
SBI Chairman Dinesh Khara had recently said that it looks like the interest rate should remain the same. “Growth is only showing green shoots. So, I think maybe, a rate may not really go up, but the comment could talk about inflation. In my mind inflation is essentially about supply chain disruption. The reason is and once this disruption is addressed, inflation may not really raise its head, as was seen at the time of the previous policy decision,” he had said.