The Reserve Bank of India (RBI)-led Monetary Policy Committee (MPC) will unveil its bi-monthly policy decisions on December 6, 2024, at 10:00 am.
The three-day meeting, which began on December 4, is being closely watched as the central bank navigates through significant economic challenges.
RBI Governor Shaktikanta Das will deliver a live address at 10:00 am, detailing the key policy decisions and their rationale.
The speech will be streamed live on RBI’s official YouTube channel and social media platforms, including Facebook and X (formerly Twitter).
A press conference will follow at 12:00 pm and will also be broadcast on these platforms.
RBI Policy Meeting Key expectations
The MPC meeting comes against a backdrop of slowing GDP growth, elevated inflation, and reduced production levels. These factors have raised public and industry expectations for corrective measures.
Key economic voices have weighed in on the potential outcomes:
Ashok Gulati, an agricultural economist, emphasised that vegetable inflation, a key driver of rising prices, is beyond the central bank’s control. He also noted that the Q2 GDP growth figures suggest the need for policy adjustments, potentially involving a reduction in the repo rate.
Mandar Pitale, Head Treasury at SBM Bank India, suggested that the RBI might focus on infusing durable liquidity through a phased reduction in the cash reserve ratio (CRR) and open market operations (OMO) rather than cutting rates immediately.
Atul Monga, CEO of BASIC Home Loan, expects the repo rate to remain unchanged, citing the benefits of stable interest rates for housing demand, particularly in mid-range and luxury segments.
Key decisions to watch
Market participants will be looking for clues on:
1. Repo Rate: Likely to remain steady at 6.5%, as was the case in the previous 10 MPC meetings.
2. Liquidity Measures: Possible adjustments to CRR or OMO to enhance liquidity.
3. Inflation Strategy: Insights on how the RBI plans to tackle persistent inflation pressures.
What happened in the last policy meet?
In October, the RBI kept the repo rate at 6.5%, maintaining its stance for the 10th consecutive time. Other key rates, such as the Standing Deposit Facility (6.25%) and the Marginal Standing Facility (6.75%), also remained unchanged. The policy decisions announced tomorrow will shape the trajectory of India’s monetary framework, influencing inflation control, liquidity, and overall economic growth.
