New Delhi(thestates.news)| : The three-day review meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) will be held between December 5-7. The policy interest rate (repo rate) is likely to increase by 0.35 percent in this bi-monthly review meeting to be chaired by Reserve Bank Governor Shaktikanta Das. Banking sector experts said on Friday that the Reserve Bank’s six-member monetary policy committee may increase the repo rate by 0.35 percent. However, RBI may refrain from increasing the repo rate thereafter. In the previous meeting (September 30), the Reserve Bank had increased the repo rate by 0.50 per cent to control retail inflation.
RBI had earlier increased the repo rate by 0.40 per cent in May, 0.50 per cent in June and 0.50 per cent in August and 0.50 per cent in September. In this way, in the financial year 2022-23, the RBI has increased the repo rate by 1.90 per cent from May till now, which has increased to the current level of 5.90 per cent. It is noteworthy that RBI’s effort to control inflation has started showing a minor effect. In October, retail inflation came down to a three-month low of 6.77 per cent. However, it is still above the upper limit of RBI’s tolerable range of 6 per cent. (HS)
