RBI Governor Shaktikanta Das to Unveil Key Decisions in December 8 MPC Meeting

Governor Shaktikanta Das, at the helm of the Reserve Bank of India (RBI) monetary policy committee (MPC) meeting, is set to reveal crucial decisions on Friday, December 8. The bi-monthly MPC session, initiated on Wednesday, will culminate in the announcement of key interest rates, GDP projections, and inflation forecasts.

Key Highlights of the RBI Monetary Policy Committee Meeting:

1. The last repo rate hike occurred on February 23, pushing it to 6.5 per cent.
2. Deutsche Bank suggests the interest rate cycle may have peaked, anticipating a probable rate cut in June.
3. Experts, including HSBC's Pranjul Bhandari, foresee the repo rate remaining steady at 6.5 per cent in the upcoming meeting, emphasizing liquidity tightness.
4. Short-term rates persist around 6.85-6.9 per cent, surpassing the repo rate by 35-40 bps amid continued tight liquidity.
5. A Reuters poll anticipates the RBI maintaining the policy rate at 6.50 per cent for the fifth consecutive meeting.
6. Traders brace for a possibly hawkish policy guidance, with a focus on inflation and liquidity management.
7. Weaker economic data raises expectations for a rate cut in the first half of 2024, with a 61 per cent likelihood in March.
8. November's retail inflation is projected to rise to 5.70 per cent, inching closer to the upper limit of the RBI's 2-6 per cent target range.
9. India sustains its status as the world's fastest-growing major economy, registering a robust 7.6 per cent GDP growth in the July-September quarter.

RBI MPC Meeting Details:

• Date: The three-day meeting commenced on December 6, with the outcome expected on Friday.
• Timing: Governor Shaktikanta Das will reveal the MPC decision at approximately 10 am on December 8.
• Schedule: A post-policy press conference by Das is scheduled for around noon on December 8.

Live Streaming Information:

The RBI will broadcast Governor Shaktikanta Das's policy statement live on the RBI's YouTube channel or the official RBI X platform (formerly Twitter) starting at 10 am on December 8. Stay tuned for real-time updates on the monetary policy decisions shaping India's economic landscape.