A crucial monetary policy will be revealed today by the six-member Monetary Policy Committee (MPC) of the Reserve Bank of India. This meeting was postponed due to singer Lata Mangeshkar’s death. According to reports, the committee is going to discuss the new economic policy. It is expected that the reverse repo rate is going to increase. Currently, the reverse repo rate stands at 3.35 per cent. While the repo rate has been left unchanged at 4 per cent for two years now. The committee is going to reveal changes in the economic policy when inflation remains at an elevated level and global central banks are in a tightening mode.<\/p>\n\n\n\n
It is expected that the Reserve Bank of India can start the process of normalization of the accommodative monetary policy. It will be done by increasing the reverse repo rate by 5 bps from 3.35 per cent. However, it is also expected that there will be no changes in the repo rate.<\/p>\n\n\n\n
Meanwhile, the latest report from Reuters indicates that the retail prices have risen nearly 10 per cent in the last two years compared with 8 per cent in the previous five-and-half years. Around 41 economists conducted four to seven surveys in which it was shown that Indian retail inflation (INCPIY=ECI) rose to 5.80 per cent last month from 4.91 per cent in November. This spending is more than two years above the Reserve Bank of India’s medium-term target of 4.0 per cent. These surveys were conducted in the month of January 2022.<\/p>\n\n\n\n
The rate at which banks borrow money from the Reserve Bank of India by selling their securities is known as the repo rate. While the reverse repo rate is just the opposite. It is the rate at which the Central bank borrows money from the commercial banks. <\/p>\n\n\n\n
Currently, the repo rate in India is 4 per cent. While the reverse repo rate is 3.35 per cent in India.<\/p>\n","protected":false},"excerpt":{"rendered":"
It will be done by increasing the reverse repo rate by 5 bps from 3.35 percent. However, it is also expected that there will be no changes in the repo rate.<\/p>\n","protected":false},"author":4,"featured_media":280883,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","footnotes":"","jetpack_publicize_message":"RBI Monetary Policy: RBI Governor Shaktikanta Das to announce MPC outcome soon, here's what to expect\n\n#RBI #MonetaryPolicy #MPC #RepoRate #ReverseRepoRate","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1497,1518],"tags":[96995,1934,14806,2083,101002],"yst_prominent_words":[28834,17481,30301,4391,5873,6752,3704,14367,14796,5685,12597,12595,11590,74100],"ppma_author":[140543],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/d2r2ijn7njrktv.cloudfront.net\/apnlive\/uploads\/2022\/02\/10094948\/Rserve-Bank-of-India-1.jpg","jetpack_sharing_enabled":true,"authors":[{"term_id":140543,"user_id":4,"is_guest":0,"slug":"apnnewsdesk","display_name":"APN Live","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/478eacb893eda88aa6ed8d99b005bf58?s=96&r=g"}],"_links":{"self":[{"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/posts\/280858"}],"collection":[{"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/comments?post=280858"}],"version-history":[{"count":0,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/posts\/280858\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/media\/280883"}],"wp:attachment":[{"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/media?parent=280858"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/categories?post=280858"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/tags?post=280858"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/yst_prominent_words?post=280858"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/ppma_author?post=280858"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}