Mumbai: The Reserve Bank of India’s Monetary Policy Committee (MPC) will announce its verdict on October 9, 2024. This MPC will also be unique since it will have 3 new external members and one internal member whose term was renewed. The MPC verdict assumes greater importance against the backdrop of the US Federal Reserve’s 50 basis point rate cut.
In its commentary on the rate cut, the US Federal Reserve stated that unemployment had risen and inflation was largely under control, indicating a soft landing for the economy into a slower phase of growth. Will the MPC follow the US central bank’s lead? Know what economists have to say.
RBI MPC date and time
Reserve Bank of India governor Shaktikanta Das will announce the monetary policy committee’s decision at 10 am on Wednesday, October 9, 2024. He will also conduct a press conference with deputy governors at 12 pm.
Where to watch RBI monetary policy live
RBI monetary policy can be seen live on the central bank’s official YouTube channel. RBI will also live stream the announcement on its official pages on social media platforms X and Facebook.
Coming up:
Monetary Policy statement by #RBI Governor @DasShaktikantaOn October 9, 2024, at 10:00 am Watch live at:
Live telecast of the Post-policy press conference at 12:00 pm… pic.twitter.com/ayDf4rcU26
— ReserveBankOfIndia (@RBI) October 8, 2024
What economists are saying about RBI rate cuts
The RBI has maintained the repo rate, the rate at which it loans money for the short term to banks, unchanged at 6.50 per cent, for 9 straight sessions. The RBI has maintained a stance of “withdrawal of accommodation”. This may change to “neutral” soon, said Abhishek Bisen, head of fixed income at Kotak Mahindra AMC, in an article.
Above normal monsoon and an expectation of lower headline inflation is expected to urge the MPC to maintain a status quo on the repo rate, he added.
The MPC will also have to take into account the escalation of geopolitical tensions in the Middle East, as well as its impact on crude oil prices. According to a Bloomberg survey of 13 economists, the MPC is unlikely to slash the repo rate by 0.25 per cent with 10 voting against and 3 in favour of a rate cut.
SBI chief economist Soumya Kanti Ghosh stated that the RBI MOC is unlikely to slash the repo rate before December 2024. The first rate cut may also be delayed until February 2025, NDTV Profit reported.
RBI MPC new members
RBI announced the appointment of 3 new external members to the MPC, namely professors Ram Singh, Saugata Bhattacharya and Nagesh Kumar. They replace Ashima Goyal, Shashanka Bhide and Jayanth Varma. Varma and Goyal were known to be votaries of an early rate cut.
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