RBI MPC policy live updates: The fact is that the RBI Governor Shaktikanta Das and his colleagues at MPC do not have any room for any major change in the rate approach this time compared with the last policy review in October. That’s because the broader inflation pattern the most watched factor by the MPC hasn’t changed much since then.
India finds itself at a critical point as its interest rate differential with the US has notably narrowed (see Figures 1 & 2 wherein government bond yields have been used as proxies for interest rates). This tight spot has left the Reserve Bank of India (RBI) facing a tough decision - whether to align with global peers and raise its repo rate or opt for a differing path
RBI MPC April 2023: The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) is expected to go for one more 25 basis points rate increase, in its first bi-monthly monetary policy meeting for financial year 2023-24, in line with the US Federal Reserve, but domestic compulsions may result in a pause after the April interest rate hike. Watch this Business Today Visual Story to know all about what could be the outcome of the first RBI MPC meeting of FY24.