The Reserve Bank of India (RBI) has released its schedule for the monetary policy committee (MPC) meetings in the upcoming financial year 2024-25 (FY25), commencing on April 1, 2024.
Led by RBI Governor Shaktikanta Das, the MPC comprises six members. The decision for the first meeting is scheduled to be announced on April 5 at 10 am.
Here are the dates for the MPC meetings in FY25:
- April 3-5, 2024
- June 5-7, 2024
- August 6-8, 2024
- October 7-9, 2024
- December 4-6, 2024
- February 5-7, 2025.
Expectations for the upcoming meeting:
The repo rate has been maintained at 6.5 percent since February 2023. Market fluctuations are expected to persist, particularly affecting stocks sensitive to interest rate changes.
Analysts anticipate the RBI to maintain its current approach, aiming to align India’s inflation with its target following the recent dovish stance of the US Federal Reserve. All 56 economists surveyed in a Reuters poll expect the RBI to keep the repo rate steady at 6.50 percent during the upcoming meeting.
However, there’s a split among economists regarding the timing of the initial rate cut in 2024. The median predictions indicate a rate of 6.25 percent by September’s end and six percent by year-end.
Overall, analysts predict ongoing volatility during the scheduled MPC meeting. Market sentiment is expected to remain positive, influenced by the performance of the Nifty 50 and banking index. Traders are advised to focus on large-cap stocks and robust sectors for potential opportunities.
Recap of the February 2024 MPC meeting:
The last MPC meeting for fiscal 2023-24 took place from February 6-8, 2024. The RBI decided to keep the benchmark interest rate unchanged at 6.5 percent for the sixth straight meeting, citing inflationary concerns.
Five members voted for the status quo on the policy rate, while one member voted to reduce the policy repo rate by 25 basis points. The MPC also decided to remain focused on the withdrawal of accommodation to ensure inflation progressively aligns with the target while supporting growth.
