RBI Monetary Policy Committee meeting begins, know what are the expectations and estimates of experts

The 3-day meeting of the Reserve Bank has started from today and its results will be out on Friday, with most economists agreeing that there may be an increase in rates between 0.35 to 0.5 percent.

RBI Monetary Policy Committee meeting begins

The meeting of the Monetary Policy Committee of the Reserve Bank has started from today. A decision will be taken on the key rates in the meeting. The market is unanimous that in the meeting repo rates However, there is no consensus about how much the increase will be. In fact, the Reserve Bank has clearly said that for the time being their priority is to control inflation. But the central bank has also said that after looking at the current conditions, it will take a decision along with complete calculations. The central bank has raised key rates by 0.9 percent twice in May and June. Recently, the Federal Reserve has also increased rates sharply. The results of the meeting will be announced on Friday

What will be discussed in the meeting

According to the market, this meeting of the Reserve Bank will be discussed on the inflation rate. What are the further signs of inflation and how much pressure will it see on the economy. Apart from this, the performance of the rupee against the dollar, and economic growth will also be discussed. The Reserve Bank will talk about the signals of foreign markets as well as the fears of recession around the world. That is, keeping the focus on the issue of inflation, the MPC will take any decision on key rates, keeping an eye on all the factors affecting the domestic economy.

What is the market opinion about rates

Most economists are of the opinion that the Reserve Bank can increase the repo rates by 35 to 50 basis points i.e. 0.35 to 0.5 percent in the meeting.

Economists surveyed by Reuters have agreed that the Reserve Bank will increase rates in the policy review, although economists could not agree on how much this increase could be in the survey.

According to brokerage company UBS, in this policy review, the Reserve Bank can increase the repo rate by 0.25 to 0.30 percent.

On the other hand, in the report of BofA Global Research, it has been said that the MPC will increase the repo rate by 0.35 percent on August 5. At the same time, she will gradually harden her stance in the coming time.

A report by DBS Group said that the monetary policy committee of the Reserve Bank will focus on price stability in the next two quarters. In such a situation, it is estimated that in August the MPC will increase the repo rate by 0.35 percent.