RBI Monetary Policy Committee Meeting this week: Date, time and what to expect

RBI Monetary Policy Committee Meeting: The first policy meeting of the central bank's rate-setting panel for FY25 is scheduled this week from April 3-5, 2024. 

The Reserve Bank of India (RBI) has announced its schedule for the monetary policy committee (MPC) meetings in the upcoming financial year 2024-25 (FY25), which begins on April 1, 2024. After the April meet, subsequent meetings are set for June 2024, August 2024, October 2024, December 2024, and February 2025.

The MPC panel, led by RBI Governor Shaktikanta Das, consists of a total of six members. Das is expected to announce the decision on April 5 at 10 am.

Also Read | RBI releases MPC schedule for FY25, first meeting to be held from April 3-5; check details

Here are the dates for the RBI's MPC meetings in FY25

— April 3-5, 2024

— June 5-7, 2024

— August 6-8, 2024

— October 7-9, 2024

— December 4-6, 2024

— February 5-7, 2025.

What Are The Expectations?

The RBI has maintained the repo rate at 6.5 percent since February 2023. As the MPC deliberates, expectations are that market fluctuations may persist, particularly affecting stocks sensitive to interest rate changes.

Analysts and economists anticipate the central bank to maintain its current approach, aiming to align India's inflation with its target following the recent dovish stance of the US Federal Reserve. The Fed foresees three rate reductions in 2024, contingent on US inflation nearing its two per cent objective.

All 56 economists part of a Reuters poll from March 15-22 said they anticipate the RBI keeping the repo rate steady at 6.50 percent during its upcoming meeting.

Nonetheless, there was a split among economists regarding the timing of the initial rate cut in 2024. The median predictions indicated the rate to be 6.25 percent by September's end and six percent by year-end.

Also Read | RBI likely to keep interest rates unchanged in upcoming April, June policy meetings: Report

Overall, analysts predict ongoing volatility during the scheduled MPC meeting. Market sentiment is expected to stay positive, influenced by the performance of the Nifty 50 and banking index. Traders are advised to concentrate on large-cap stocks and robust sectors for potential opportunities.

RBI MPC February 2024 Meeting

The central bank's last MPC meeting for fiscal 2023-24 was conducted from February 6-8, 2024. The RBI at its last bi-monthly meeting on February 8 decided to keep the benchmark interest rate unchanged at 6.5 percent for the sixth straight meeting, citing inflationary concerns.

Five members including Dr Michael Debabrata Patra, Shashanka Bhide, Ashima Goyal, and Rajiv Ranjan voted for the status quo on the policy rate for the sixth consecutive time, while Jayanth R Varma voted to reduce the policy repo rate by 25 basis points.

As per this, the Fixed Reverse Repo Rate has been at 3.75 percent, the bank rate is 6.75 percent, the marginal standing facility (MSF) rate is 6.25 percent, and the standing deposit facility rate is at 6.25 percent.

The MPC also decided by a majority of five out of six members, to remain focused on the withdrawal of accommodation to ensure the inflation progressively aligns with the target while supporting growth. Monetary policy must continue to be actively disinflationary, Das said in his statement.