RBI Monetary Policy August 2023: Will RBI Change Interest Rate Today? Know What Experts Say

New Delhi: The 6-member Monetary Policy Commitee headed by RBI Governor Shaktikanta Das is all set to announce the outcome of the central bank's bi-monthly policy on Thursday.

The high-powered rate-setting panel MPC began its three-day meeting on on Tuesday with speculations abuzz that the RBI might go for another status quo on the key interest rates

Experts suggest that the committee might choose to keep the interest rates unchanged amidst concerns of inflation and keeping the borrowing cost stable to maintain the economic growth momentum.

In its last policy announcement in June, the Reserve Bank of India (RBI) kept the repo rates unchanged at 6.5 percent. The Monetary Policy Committee (MPC) of the central bank unanimously decided to take a consecutive pause in its second bi-monthly monetary policy meeting of FY24 after a rate hike seen in previous six consecutive policies.

A year is divided into six bimonthly reviews of the central bank's monetary policy. Additionally, there are out-of-cycle reviews, where the central bank holds extra sessions in urgent situations.

Announcing the Monetary Policy, RBI Governor Shaktikanta Das said that MPC will continue to take policy actions promptly and appropriately to keep inflation expectations firmly anchored. "Headline inflation is above the target of 4 percent and expected to remain so during rest of the year," he added.

The Central Bank has lowered retail inflation projection to 5.1 percent during FY'24 from earlier estimate of 5.2 percent. Governor Das said, "RBI retains growth projection at 6.5 percent for FY'24, expects 8 percent growth in Q1, 6.5 percent in Q2, 6 percent in Q3 and 5.7 percent in Q4."

RBI has also lowered retial inflation projection to 5.1 percent during FY'24 from earlier estimate of 5.2 percent. RBI Governor said that GDP growth in Q1 this fiscal year expected at 8 percent.