Will the RBI Announce a Rate Drop on Friday

RBI MPC Review Preview, June 5-7: Is it possible that the Monetary Policy Committee (MPC), chaired by RBI Governor Shaktikanta Das, may reduce the benchmark lending rate or alter its position at the June review? Here’s everything you need to know about the most recent high-frequency indicator readings and the state of the economy.

Will the RBI Announce a Rate Drop on Friday

Preview of the RBI June Meeting: On June 7, is it likely that RBI Governor Shaktikanta Das will declare a rate reduction? On Friday, June 7, at 10 a.m., the RBI’s highly influential Monetary Policy Committee will make its announcement. This is the last day of a bi-monthly review that started on Wednesday. The incident occurred a few days after government statistics revealed the nation’s economy grew more quickly than anticipated. of 7.8% during the quarter ending in March, driven by expansion in its important manufacturing sector.

Commercial bank, Will the RBI Announce a Rate Drop on Friday

The RBI is anticipated to maintain the repo rate, which is the main interest rate at which it loans money to commercial banks, at 6.5% in the June review, according to economists surveyed by stock 24 news. Since February of last year, the central bank has kept the key lending rate at this particular level.

Ten more crucial points to be aware of before the June MPC review are as follows:

• Rate of return and position: According to stock 24 news research, all of the economists surveyed anticipate no adjustment in the repo rate in the June 7 statement, but four-fifths of them also anticipate no change in the policy stance. The MPC’s guidelines the “withdrawal of accommodation” stance.
• When will the current cycle’s first cut be revealed? According to the research, three economists anticipate the first rate cut in October, one in 2025, and six out of ten economists surveyed expect it to be disclosed in the December policy.
• This year, how many rate cuts are there? According to the study, 70% of economists anticipate one rate cut this year, 20% anticipate two, and the remaining 10% anticipate none.
• Will the RBI revise its estimate of inflation? According to the poll, four-fifths of economists anticipate that the RBI would stick to its forecasts for GDP and inflation in the June review.
• Will it adjust its GDP estimate? There is disagreement among economists regarding if the RBI will adjust its GDP estimates. and say Will the RBI Announce a Rate Drop on Friday
• GDP projection: Citing “evenly balanced” risks, the RBI now projects an average GDP expansion of 7.0% in 2024–2025. The projected GDP growth rates are 7.1% in Q1, 6.9% in Q2, 7.0 % in Q3, and 7.0 % in Q4.
• Estimate of inflation: In FY25, the central bank projects consumer inflation to be 4.5% (it was 4.9% in Q1, 3.8% in Q2, 4.6% in Q3, and 4.5% in Q4).
• The MPC stated in its April review that “the strong growth momentum and our GDP projections for 2024–25 give us the policy space to unwaveringly focus on price stability.” The RBI monitors data on consumer inflation. largely while determining its monetary policy.
• Cash reserve ratio (CRR): In the June review, none of the economists anticipates a change in this crucial ratio, which establishes the percentage of deposits that commercial banks must keep with the RBI.
• India’s 8.2 percent GDP growth at the end of the fiscal year 2023–24 was the greatest among the world’s major countries and was 60 basis points more than the previous official projection. Read more post…

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