New Delhi: The Governor of Reserve Bank of India, Shaktikanta Das will address the Monetary Policy at 10am. Following this, there will be post-policy press conference at noon. The Monetary Policy Committee, chaired by Governor Shaktikanta Das has been meeting in Mumbai this week to discuss key policy decisions in a challenging economic landscape.
The central bank’s position on the benchmark interest rate has drawn a lot of attention especially due to ongoing inflation, particularly in the food sector. The RBI’s repo rate, currently held at 6.5 per cent since its last increase in February 2023, is widely anticipated to remain unchanged for the eighth consecutive bi-monthly policy review. (Also Read:Â RBI Likely To Leave Interest Rates Unchanged)
M Govinda Rao, a member of the Fourteenth Finance Commission and former director of the National Institute of Public Finance and Policy, remarked, “It is widely expected that the MPC will hold the policy rate in the eighth consecutive meeting. The inflation rate, particularly the food inflation continues to be much higher than the target rate of 4 per cent” Inflation Dynamics and Economic Outlook:
Food inflation has been a persistent concern, with urban areas experiencing a 1.03 percent rise and rural areas seeing a 0.59 percent increase in April, leading to a combined national food inflation increase of 0.74 percent. This trend underscores the challenges faced by the central bank in maintaining price stability.
Despite these inflationary pressures, there is optimism surrounding the agricultural sector. The forecast of an above-normal monsoon and expected improvements in agricultural production could help ease food inflation in the coming months. (With ANI Inputs)