HomeEconomy NewsRBI to announce monetary policy today; here's what to expect

RBI to announce monetary policy today; here's what to expect

It is widely anticipated that the MPC is likely to maintain the status quo on the benchmark interest rate or repo rate. Experts, however, are of the opinion that the MPC may change the policy stance from ‘accommodative’ to ‘neutral’ and tinker with the reverse-repo rate as part of the liquidity normalisation process.

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By CNBCTV18.com February 10, 2022, 7:15:24 AM IST (Updated)

RBI to announce monetary policy today; here's what to expect
The Reserve Bank of India's six-member Monetary Policy Committee is scheduled to announce the policy resolution on February 10. The panel began its three-day deliberations on Tuesday to decide the next monetary policy.


The meeting was to start on Monday but it was postponed by a day in view of Maharashtra declaring public holiday on February 7 to mourn the death of legendary singer Lata Mangeshkar.

It is widely anticipated that the MPC is likely to maintain the status quo on the benchmark interest rate or repo rate. Experts, however, are of the opinion that the MPC may change the policy stance from ‘accommodative’ to ‘neutral’ and tinker with the reverse-repo rate as part of the liquidity normalisation process.

If the RBI maintains status quo in policy rate on Thursday, it would be the tenth consecutive time since the rate remains unchanged. The Central bank had last revised the policy rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting interest rate to a historic low.

Also Read: Challenging macro milieu that RBI may well shrug off

According to Brickwork Ratings, the RBI may continue to hold the policy rates at current levels in the upcoming policy meeting.

“We expect the MPC to start increasing the policy rates beginning with normalising the policy corridor between repo and reverse repo rate. We expect the RBI to hike the reverse repo rate in its April 2022 policy meeting,” it said.

The outlook on inflation and growth may remain unchanged for the current fiscal, while the statement is keenly awaited for its forward guidance on inflation and the GDP for the next fiscal, it added.

The last MPC held in December 2021 had kept the benchmark interest rate unchanged at 4 percent and decided to continue with its accommodative stance against the backdrop of concerns over the emergence of the new coronavirus variant Omicron. The MPC has been tasked by the government to keep inflation in the range of 2-6 percent.

-With agency inputs
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