The meeting, which began on 3 April 2023 will continue to 6 April 2023, where the central bank Governor Shaktikanta Das-headed MPC will take into account various domestic and global factors before coming out with the first bi-monthly monetary policy for fiscal 2023-24. The decision of the six-member rate setting panel will be announced by the Governor on Thursday. aaa
There are expectations that the central bank will raise its main interest rate by 25 basis points and then pause for the rest of the year. The RBI raised its key repo rate by 25 bps to 6.5 per cent during its February 2023 meeting, in line with expectations, the sixth rate hike in a row.
Due to inflationary pressure, since May last year, RBI has hiked the repo rate six times in a row taking the total hike to 250 bps. The repo rate has shifted from 4% to a four-year high of 6.50%.