Synopsis: Reserve Bank Governor Shaktikanta Das will announce the bi-monthly policy on Thursday, February 8. The announcement is expected to maintain a status quo on the key interest rate due to inflation remaining near the upper tolerance level of 6%. Although retail inflation has declined since reaching a peak of 7.44% in July 2023, it remains high at 5.69% in December 2023. Experts anticipate that the central bank will not change the repo rate for the sixth time in a row, which currently stands at 6.5%, mainly due to concerns over inflation. The government has mandated the central bank to ensure that the retail inflation based on the Consumer Price Index (CPI) remains at 4%, with a margin of 2% on either side. The MPC, led by Governor Das, is responsible for deciding the policy repo rate to achieve the inflation target while keeping in mind the objective of growth.
rbi monetary policy: Monetary Policy Statement by Shaktikanta Das, Governor of the Reserve Bank of India (RBI) – The Economic Times Video
