RBI MPC Meet 2024 Expectations Live: Will central bank change repo rate?

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) convened for a three-day meeting on Tuesday, with most analysts projecting no change in the benchmark interest rate. On August 8, the committee's decision will be made public.

The chief investment officer of debt at Kotak Mahindra AMC, Deepak Agrawal, predicts that the repo rate will remain at 6.50%. Core inflation is still stable at 3.10% even though recent increases in food prices have caused inflation to spike to 5.08%. Agrawal pointed out that favourable monsoon conditions, recent drops in crude oil prices, and improvements in the fiscal deficit could all help to restrain inflation in the upcoming months.

Global economic trends point to a more dovish global stance, including weaker U.S. data and rate cuts by major central banks. Agrawal anticipates that the RBI will keep its current rate in place but might adopt a more neutral approach to policy. Barclays' Shreya Sodhani, a regional economist, believes the MPC will stay on hold while it monitors the inflation outlook for the second half of FY24–25.