The Reserve Bank of India (RBI) is set to announce its decision on key interest rates Friday morning, following the conclusion of its three-day monetary policy meeting. With inflation still high and GDP growth showing signs of weakness, experts anticipate that the central bank will likely keep the short-term lending rate (repo rate) unchanged. However, there may be adjustments to the cash reserve ratio (CRR) to respond to mixed economic signals.
“Monetary Policy Statement by RBI Governor @DasShaktikanta will be announced on December 6, 2024, at 10:00 AM,” the Reserve Bank confirmed via social media platform X.
Key Highlights to Watch in RBI’s Monetary Policy Decision:
- Status Quo on Repo Rate Expected: In response to high inflation and moderate economic growth, analysts predict that the RBI will maintain its current short-term lending rate.
- Potential Changes to Cash Reserve Ratio (CRR): Given the mixed economic indicators, the RBI may adjust the CRR to influence liquidity and support economic stability.
What to Expect from the RBI’s Policy Statement:
- Inflation and Economic Growth: With inflationary pressures still looming, the RBI’s decision will focus on managing inflation while supporting sustainable growth.
- Market Impact: Investors and businesses will closely watch the RBI’s moves, especially regarding any changes to liquidity measures and their impact on the broader economy.
