Next RBI MPC Meeting Date 2022: Release of Monetary Policy Statement, 2022-23 Resolution of the Monetary Policy Committee (MPC) on August 3-5, 2022, it was announced that the next MPC meeting is scheduled for September 28 and 30, 2022.
The next meeting of the MPC is scheduled during September 28-30, 2022.
The RBI Governor-led Monetary Policy Committee (MPC) is scheduled to begin its three-day deliberations on Wednesday. The tariff-setting tribunal’s decision will be announced on Friday (September 30).
The Reserve Bank of India (RBI) may follow the lead of its global counterparts, including the US Federal Reserve, to raise interest rates for the fourth time in a row on Friday to control stubborn inflation. The RBI, which has increased the short-term lending rate (repo) by 140 basis points (bps) since May, may rise again by 50 bps to take it to a three-year high of 5.9 percentsay experts, according to a PTI report.
The central bank had raised the repo rate by 40 bps in May and 50 bps each in June and August. The current rate is 5.4%.
Retail inflation based on the consumer price index (CPI), which had started to show signs of moderation since May, has re-consolidated to 7% in August. The RBI takes retail inflation into account while setting its bi-monthly monetary policy.
The US Fed offered a third straight rate hike after raising rates by 75bps to take the target range to 3-3.25 percent. The central banks of the United Kingdom and the EU have also bet on rate hikes to control inflation.
Madan Sabnavis, chief economist at Bank of Baroda, said inflation in India remains high at around 7% and is unlikely to come down anytime soon, according to PTI.
“This means a rate hike is taking place. The quantum is what the market would be interested in. While a 25-35bp hike would have indicated that the RBI is confident that the worst of inflation is over, recent developments in the The forex market could trigger a higher amount of 50bps to stay on track with other markets to keep investors interested,” he said, the PTI report added.
The government has instructed the RBI to ensure that retail inflation remains at 4%, with a margin of 2% on either side.
Dhruv Agarwala, Group CEO, Housing.Com, said that reducing inflation will remain the RBI’s top concern amid a resilient economic expansion and strong credit growth. “Any rise in rates would result in banks also raising interest rates on home loans. But, we believe the impact would not be significant as demand for real estate remains robust. Demand will only increase ‘will speed up even more during this holiday season.” he said.
Global commodity prices have remained volatile after falling from record highs in June.
SBI in a special report said a 50 basis point hike in the repo rate “looks imminent”.
“We expect the peak repo rate of the cycle to be 6.25 percent. A final rate hike of 35 bps is expected in the December policy,” he said.
ICRA Chief Economist Aditi Nayar also expects another 50bps MPC rate hike in September 2022. With inflation expected to moderate in October 2022, it is likely that the December political decision will depend a lot on the data, he added.
(With PTI tickets)