RBI Governor Shaktikanta Das to announce monetary policy amid inflation concerns
Jun 07, 2024
Mumbai (Maharashtra) [India], June 7 : Reserve Bank of India (RBI) Governor Shaktikanta Das is set to address the Monetary Policy at 10 am on Friday, followed by a post-policy press conference at noon.
The Monetary Policy Committee (MPC), chaired by Governor Das, has been convening in Mumbai this week to deliberate on key policy decisions amidst a challenging economic landscape.
The central bank's stance on the benchmark interest rate has garnered significant attention, particularly given the persistent inflationary pressures, especially in the food sector.
The RBI's repo rate, currently held at 6.5 per cent since its last increase in February 2023, is widely anticipated to remain unchanged for the eighth consecutive bi-monthly policy review.
M Govinda Rao, a member of the Fourteenth Finance Commission and former director of the National Institute of Public Finance and Policy, remarked, "It is widely expected that the MPC will hold the policy rate in the eighth consecutive meeting. The inflation rate, particularly the food inflation continues to be much higher than the target rate of 4 per cent" Inflation Dynamics and Economic Outlook:
Food inflation has been a persistent concern, with urban areas experiencing a 1.03 percent rise and rural areas seeing a 0.59 percent increase in April, leading to a combined national food inflation increase of 0.74 percent.
This trend underscores the challenges faced by the central bank in maintaining price stability.
Despite these inflationary pressures, there is optimism surrounding the agricultural sector. The forecast of an above-normal monsoon and expected improvements in agricultural production could help ease food inflation in the coming months.
