Mumbai (Maharashtra) [India], Reserve Bank of India (RBI) Governor Shaktikanta Das is scheduled to address monetary policy at 10 am on Friday, followed by a post-policy press conference in the afternoon.
The Monetary Policy Committee (MPC) chaired by Governor Das convened in Mumbai this week to deliberate on key policy decisions amid the challenging economic scenario.
The central bank's stance on the benchmark interest rate has attracted significant attention, especially in view of persistent inflationary pressures in the food sector.
The RBI's repo rate, which currently stands at 6.5 per cent since the last increase in February 2023, is widely expected to remain unchanged for the eighth consecutive bi-monthly policy review.
M Govinda Rao, member of the Fourteenth Finance Commission and former director of the National Institute of Public Finance and Policy, commented, "It is widely expected that the MPC will consider the policy rate in its eighth consecutive meeting. Inflation rates, especially food inflation remains well above the target rate of 4 per cent" Inflation Dynamics and Economic Outlook:
Food inflation continues to be a matter of concern, with April witnessing a rise of 1.03 per cent in urban areas and 0.59 per cent in rural areas, taking the combined national food inflation to 0.74 per cent.
This trend underlines the challenges faced by the central bank in maintaining price stability.
Despite these inflationary pressures, there is optimism about the agriculture sector. Forecasts of a above-normal monsoon and expected improvement in agricultural production could help ease food inflation in the coming months.
The Monetary Policy Committee (MPC) chaired by Governor Das convened in Mumbai this week to deliberate on key policy decisions amid the challenging economic scenario.
The central bank's stance on the benchmark interest rate has attracted significant attention, especially in view of persistent inflationary pressures in the food sector.
The RBI's repo rate, which currently stands at 6.5 per cent since the last increase in February 2023, is widely expected to remain unchanged for the eighth consecutive bi-monthly policy review.
M Govinda Rao, member of the Fourteenth Finance Commission and former director of the National Institute of Public Finance and Policy, commented, "It is widely expected that the MPC will consider the policy rate in its eighth consecutive meeting. Inflation rates, especially food inflation remains well above the target rate of 4 per cent" Inflation Dynamics and Economic Outlook:
Food inflation continues to be a matter of concern, with April witnessing a rise of 1.03 per cent in urban areas and 0.59 per cent in rural areas, taking the combined national food inflation to 0.74 per cent.
This trend underlines the challenges faced by the central bank in maintaining price stability.
Despite these inflationary pressures, there is optimism about the agriculture sector. Forecasts of a above-normal monsoon and expected improvement in agricultural production could help ease food inflation in the coming months.