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RBI Monetary Policy Committee LIVE: Reserve Bank of India’s bi-monthly Monetary Policy Committee (MPC) will end its three-day deliberations today. The six-member committee of central bankers is believed to have discussed the normalization of policy measures taken over the course of the last two years amid the pandemic. The MPC members are expected by some economists to go for a hike in the reverse repo rate which currently stands at 3.35%. The Repo rate has been left unchanged at 4% for two years now. With many countries having begun policy normalization and even the US Federal Reserve announcing a faster than expected rate hike cycle all eyes are on the RBI. The central bank had last revised the policy rate on May 22, 2020.
Economists and analysts are predicting a hike in the reverse repo rate between 20-40 basis points. However, a change in the monetary policy committee’s accommodative stance is unlikely and a change in repo rate also seems less likely to happen. “We expect overall policy guidance from the RBI to remain markedly more dovish than its global peers, as the output gap in India is likely to stay negative for longer, while inflation should broadly trend lower through 2022,” said Rahul Bajoria, Managing Director & Chief India Economist, Barclays.
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