RBI credit policy: Monetary policy committee likely to keep repo rate unchanged, say economists

The Reserve Bank of India's Monetary Policy Committee commenced its three-day deliberations on Wednesday. RBI governor Shaktikanta Das will announce the credit policy on Friday at 10 am.

For the 8th time in a row, the repo rate is likely to remain unchanged at 6.5%, as per 34 economists polled by Bloomberg. The repo rate is the rate at which the RBI lends to commercial banks.

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Experts also expect the RBI to maintain its withdrawal of accommodation stance.

The Bloomberg report also quoted Citigroup economists who said that the central bank will “have to watch the fiscal outcome of the next month’s budget now more closely before considering the monetary policy path."

Meanwhile, RBI governor's comments will also be closely watched given that this is the first credit policy post the election results.
The central bank last increased the repo rate to 6.5% in February 2023.