Governor of the Reserve Bank of India, Shaktikanta Das congratulated the central bank on its 88 years of dedicated service to the country.
“Congratulations Team RBI for their 88 years of dedicated service to the nation. It’s a sobering experience. A day to renew our commitment to the duties of this national organization,” the Governor said in a tweet. With its Monetary Policy Committee meetings on April 3, 4, 5, and 6, the RBI began its first bi-monthly assessment of the new fiscal year. In a year, the central bank examines its monetary policy six times bimonthly. There are also out-of-cycle reviews, in which the central bank holds extra meetings in moments of emergency.
Stakeholders are watching these sessions closely as almost every central bank attempts to assess rising inflation amid fears of a mild recession.
When the three-day discussions conclude on Thursday, the results of the meetings will be released.
The RBI’s Monetary Policy Committee (MPC) agreed in early February to raise the repo rate by 25 basis points to 6.5 percent to control inflation. Raising interest rates is a monetary policy tool that usually helps to suppress demand in the economy, allowing the inflation rate to fall.
According to the newest Ecowrap report from SBI Research, the RBI is anticipated to pause its interest rate hike, and the current 6.5 percent repo rate may be the terminal rate for the time being.
As per the reports, the RBI has sufficient reasons to postpone the repo rate hike at its April conference.