<p>Mumbai: The rate-setting panel of RBI on Wednesday started its three-day deliberations to decide the next monetary policy amid expectations of continuation of the current interest rate.</p><p>Reserve Bank Governor Shaktikanta Das will announce the decisions taken by the Monetary Policy Committee (MPC) on Friday.</p><p>Experts are of the view that the central bank is unlikely to cut the benchmark interest rate (repo) as inflation still remains a matter of concern.</p><p>The MPC may also refrain from rate cut as economic growth is picking up, notwithstanding the elevated <a href="https://www.deccanherald.com/business/economy/rbi-keeps-benchmark-repo-rate-unchanged-at-65-2966252">repo rate</a> of 6.5 per cent prevailing since February 2023.</p><p>The central bank last hiked repo rate to 6.5 per cent in February 2023 and since then it has maintained status quo 7 times in a row.</p><p>According to a SBI research paper, the central bank needs to continue the current stance of withdrawal of accommodation.</p>.Standard Chartered evaded prosecution for funding "terrorist groups": Report.<p>The report titled 'Prelude to MPC Meeting' expects RBI to cut repo rate in third quarter of the current fiscal and 'such rate cut cycle is likely to be shallow'.</p><p>It also said CPI-based retail inflation is expected to remain close to 5 per cent in May (data to be released later this month) and decline thereafter to 3 per cent in July.</p><p>Inflation is expected to stay below 5 per cent beginning October till the end of 2024-25 fiscal, it added.</p><p>On expectations from RBI, Dhruv Agarwala, Group CEO, Housing.com & Proptiger.com said India's economy continued its robust performance, achieving an impressive growth rate of 8.2 per cent in 2023-24, up from 7 per cent in 2022-23.</p><p>"In light of this, it is expected that the RBI MPC will maintain its current policy stance amid ongoing inflationary pressures, with a rate cut looking increasingly unlikely this year," he said.</p>.Lok Sabha Elections 2024 | NSE chief Chauhan congratulates Modi for historic third win.<p>Anantharam Varayur, co-founder, Manasum Senior Living, too expects status quo or reduction in interest rate by the cental bank in the upcoming bi-monthly policy.</p><p>"We hope for measures that ease liquidity constraints in the market and boost consumer confidence, which can positively impact real estate sales," Varayur added.</p><p>The government has mandated Reserve Bank to ensure retail inflation at 4 per cent with a margin of 2 per cent on either side. Retail inflation was 4.83 per cent in April this year.</p><p>Saurabh Rai, CEO Arahas has RBI needs to focus on monetary policy to facilitate funding and incentives for geospatial technology, sustainability solutions.</p><p>"Such initiatives will not only drive innovation but also significantly contribute to our national goals of sustainable development and economic resilience. A favourable monetary policy can accelerate the adoption of green technologies, fostering a more sustainable future for India," Rai said.</p><p>The MPC consists of three external members and three officials of RBI. External members of the rate-setting panel are Shashanka Bhide, Ashima Goyal, and Jayanth R Varma.</p>
<p>Mumbai: The rate-setting panel of RBI on Wednesday started its three-day deliberations to decide the next monetary policy amid expectations of continuation of the current interest rate.</p><p>Reserve Bank Governor Shaktikanta Das will announce the decisions taken by the Monetary Policy Committee (MPC) on Friday.</p><p>Experts are of the view that the central bank is unlikely to cut the benchmark interest rate (repo) as inflation still remains a matter of concern.</p><p>The MPC may also refrain from rate cut as economic growth is picking up, notwithstanding the elevated <a href="https://www.deccanherald.com/business/economy/rbi-keeps-benchmark-repo-rate-unchanged-at-65-2966252">repo rate</a> of 6.5 per cent prevailing since February 2023.</p><p>The central bank last hiked repo rate to 6.5 per cent in February 2023 and since then it has maintained status quo 7 times in a row.</p><p>According to a SBI research paper, the central bank needs to continue the current stance of withdrawal of accommodation.</p>.Standard Chartered evaded prosecution for funding "terrorist groups": Report.<p>The report titled 'Prelude to MPC Meeting' expects RBI to cut repo rate in third quarter of the current fiscal and 'such rate cut cycle is likely to be shallow'.</p><p>It also said CPI-based retail inflation is expected to remain close to 5 per cent in May (data to be released later this month) and decline thereafter to 3 per cent in July.</p><p>Inflation is expected to stay below 5 per cent beginning October till the end of 2024-25 fiscal, it added.</p><p>On expectations from RBI, Dhruv Agarwala, Group CEO, Housing.com & Proptiger.com said India's economy continued its robust performance, achieving an impressive growth rate of 8.2 per cent in 2023-24, up from 7 per cent in 2022-23.</p><p>"In light of this, it is expected that the RBI MPC will maintain its current policy stance amid ongoing inflationary pressures, with a rate cut looking increasingly unlikely this year," he said.</p>.Lok Sabha Elections 2024 | NSE chief Chauhan congratulates Modi for historic third win.<p>Anantharam Varayur, co-founder, Manasum Senior Living, too expects status quo or reduction in interest rate by the cental bank in the upcoming bi-monthly policy.</p><p>"We hope for measures that ease liquidity constraints in the market and boost consumer confidence, which can positively impact real estate sales," Varayur added.</p><p>The government has mandated Reserve Bank to ensure retail inflation at 4 per cent with a margin of 2 per cent on either side. Retail inflation was 4.83 per cent in April this year.</p><p>Saurabh Rai, CEO Arahas has RBI needs to focus on monetary policy to facilitate funding and incentives for geospatial technology, sustainability solutions.</p><p>"Such initiatives will not only drive innovation but also significantly contribute to our national goals of sustainable development and economic resilience. A favourable monetary policy can accelerate the adoption of green technologies, fostering a more sustainable future for India," Rai said.</p><p>The MPC consists of three external members and three officials of RBI. External members of the rate-setting panel are Shashanka Bhide, Ashima Goyal, and Jayanth R Varma.</p>