RBI Monetary Policy Meet: The Reserve Bank of India, or RBI, is highly likely to announce major decisions taken at its monetary policy meet on Thursday, February 10. The central bank is widely expected to hike the reverse repo rates after a gap of almost two years. The RBI had during its last bi-annual meet decided to keep the interest rates unchanged at record lows given the emergence of the Omicron variant of COVID-19, which caused the third wave in India.
The RBI’s MPC meet started a day back on Tuesday, instead of Monday due to the demise of iconic singer Lata Mangeshkar due to which the Maharashtra government designated a day for mourning. While general people are speculating the repo rates to remain unchanged, experts are anticipating the central bank to hike the reverse repo rate to normalise liquidity. However, if it does keep the repo rate fixed, this will be the tenth tie the Reserve Bank keeps the same stance. Also Read: RBI Monetary Policy LIVE Updates: Will RBI Hike Reverse Repo Rate and Change Stance?
“We expect the MPC to start increasing the policy rates beginning with normalising the policy corridor between repo and reverse repo rate. We expect the RBI to hike the reverse repo rate in its April 2022 policy meeting,” said Brickworks Ranking.
“An increase in the reverse repo rate will mean this is the first step in signalling normalisation. We may expect more such hikes till the 25 bps corridor is reached,” said Madan Sabnavis, chief economist of Bank of Baroda. “Markets will take it that rate hikes have started and yields may be expected to move up. This will be a precursor to the repo rate hikes to come.”
The monetary policy meet of the RBI comes days after Union finance minister Nirmala Sitharaman presented the Budget 2022 at the Parliament.
Here is How to Watch RBI Monetary Policy Decisions LIVE Today
YouTube: You can watch the LIVE address of RBI governor Shaktikanta Das on YouTube
Facebook: The address will be simultaneously streamed on Reserve Bank of India’s Facebook page.
Twitter: RBI Governor Shaktikanta Das’ address to the country will also be streamed on the Central Bank’s official Twitter handle @RBI.
You can also keep an eye on the News18 Live Blog for the MPC meet, which will be updated with latest news.
The Reserve Bank of India governor will also address a press conference after the announcing the decisions at 12 pm. One can watch it live on YouTube at https://youtu.be/nA9YhLwV9RA.
There have been widespread speculations about the central bank hiking the reverse repo rates by 20 bps. The reserve bank kept Accommodative Stance unchanged during December 8 MPC meeting. The central bank had also kept the Reverse Repo Rate and the Marginal Standing Facility unchanged.