RBI Monetary Policy Committee (MPC) Meeting Live Updates: 08 December 2023

The Reserve Bank of India is likely to maintain the status quo on the short-term interest rate in its monetary policy review, with inflation staying in comfort zone and economic growth moving at an accelerated pace, opined experts. The RBI has left the repo rate unchanged in its past four bi-monthly monetary policies. The central bank had last increased the repo rate in February to 6.5 per cent, thus ending the interest rate hiking spree which began in May 2022 in the aftermath of Russia-Ukraine war and subsequent disruptions in the global supply chain resulting in high inflation in the country. 

On expectations from the RBI’s monetary policy, Madan Sabnavis, Chief Economist, Bank of Baroda, said the central bank is most likely to maintain the status quo on rates as well as stance this time.

“The high growth witnessed in Q2 in GDP will provide assurance that the economy is on track. The low core inflation numbers in the last few months will provide comfort that there is no need to increase rates even while headline inflation is likely to be volatile in the upward direction,” he said.

“Some direction on liquidity will be useful to the market as the system is in deficit for quite some time,” he said and added there can be some upward revision in the GDP growth numbers though will not be very significant.

Aurodeep Nandi, India economist at Nomura, also expects the MPC to unanimously vote to pause at its December policy meeting. (PTI)