Between May 2022 and February this year, the repo rate has been hiked by 250 bps to 6.5 per cent. In April, the MPC decided to hit the pause button on rate hikes. RBI Governor Shaktikanta Das emphasised that it was a pause and not a pivot while retaining the possibility of further tightening.
It had maintained its stance of “withdrawal of accommodation” in the April meeting.
“The full impact of the 250 basis points increase in repo rate undertaken by RBI since May 2022 is still panning out in relation to the growth versus inflation matrix, and any change in the policy rate may require some further examination of the emerging economic parameters, before taking a final view on either increasing or decreasing the repo rate,” he added.
In an earlier Business Standard poll, 10 participants also said that the RBI is expected to keep the repo rate unchanged.
“We expect the RBI to keep a neutral stance but with a wait-and-watch approach. The inflation has cooled down and the RBI would not want to subdue the aggregate demand in the economy further with anyways external factors indicating a global slowdown. In no way do we expect this neutral stance to indicate a dovish approach from rbi but would rather brand this as a ‘cautious approach’,” he said.
Where to watch the RBI MPC announcement?
At what time will RBI MPC announce its policy?
The telecast of the RBI MPC will start at 10 am on Thursday, June 8.