RBI Governor Shaktikanta Das to Announce First Monetary Policy of FY 2024-25 Today

The Reserve Bank of India (RBI) Governor Shaktikanta Das is set to announce the first bi-monthly monetary policy of the financial year 2024-25 today. The two-day meeting of the Monetary Policy Committee (MPC) led by RBI governor Shaktikanta Das commenced on Wednesday, April 3, and concludes on April 5.

It is widely anticipated that the central bank will maintain a status quo on key policy rates. RBI governor Shaktikanta Das will reveal the interest rate decision of the bi-monthly monetary policy meeting at 10 am. The status quo is expected to be maintained on policy rates while assessing the impact of global headwinds on Indian economic growth and inflation.

Key Things to Watch Out for in RBI Policy Today:

1. Repo Rate:
   Analysts and economists expect the RBI to keep its key repo rate unchanged at 6.50% in the April policy meeting for the seventh consecutive time. The repo rate is the interest rate at which the central bank lends short-term funds to commercial banks.
2. Policy Stance:
   The RBI is likely to continue with its stance of ‘withdrawal of accommodation’. The central bank’s policy stance indicates the thinking within the Monetary Policy Committee.
3. GDP Growth Target:
   India’s GDP growth rate in the quarter ended December 2023 stood at 8.4%, surpassing RBI’s estimates. Economists anticipate the central bank may revise its GDP growth target for FY25.
4. Inflation Forecast:
   India’s consumer price index (CPI)-based inflation stood at 5.09% in February, above the central bank’s target of 4%. RBI’s comments on inflation amid rising crude oil prices will be closely monitored.
5. Liquidity Measures:
   RBI is expected to maintain liquidity through repo and reverse repo auctions and manage daily liquidity positions. Any liquidity measures announced by the central bank will be crucial for the money and bond markets.

Overall, the RBI’s monetary policy decision and Governor Shaktikanta Das’s comments on various economic indicators will be closely watched for insights into the central bank’s future actions and its assessment of the Indian economy.