<p>According to reports, the Reserve Bank of India (RBI) may maintain the status quo (the present situation) on the main interest rates for a third time. at spite of rate increases by the US Federal Reserve and the European Central Bank, it is anticipated that the RBI would hold off on raising interest rates at its forthcoming bimonthly policy review.<img decoding=”async” class=”alignnone wp-image-104492″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/07/theindiaprint.com-the-results-of-the-ts-eamcet-phase-2-seat-allocation-will-be-announced-today-at-tseamcet-nic-in-download-2023-07-31t175359.100.jpg” alt=”” width=”1300″ height=”721″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/07/theindiaprint.com-the-results-of-the-ts-eamcet-phase-2-seat-allocation-will-be-announced-today-at-tseamcet-nic-in-download-2023-07-31t175359.100.jpg 301w, https://www.theindiaprint.com/wp-content/uploads/2023/07/theindiaprint.com-the-results-of-the-ts-eamcet-phase-2-seat-allocation-will-be-announced-today-at-tseamcet-nic-in-download-2023-07-31t175359.100-150×83.jpg 150w” sizes=”(max-width: 1300px) 100vw, 1300px” /></p>
<p>The past two bimonthly policy reviews, conducted in April and June, maintained the benchmark rates, experts contend, indicating that domestic inflation is still within the RBI’s comfort range. The RBI decided to keep the repo rates at 6.5%, which jumped to 6.25% in February, despite the fact that borrowing costs started to rise in May of last year.</p>
<p>On August 10, RBI Governor Shaktikanta Das will make the announcements after the Monetary Policy Committee (MPC) meeting, which will start on August 8. Six people make up the MPC, which is led by the governor of the RBI. Every two to three months, the Committee meets, and on the third day of the meeting, the RBI Governor holds a news conference to announce any changes, if any.</p>
<p>We do anticipate the RBI to retain a status quo posture on both rates and attitude, according to Bank of Baroda Chief Economist Madan Sabnavis. Currently, inflation is less than 5%, but because of rising costs for vegetables and pulses in the coming months, there may be some upside risk. Consequently, a long hiatus is anticipated.</p>
<p>The third quarter’s inflation rate for the RBI was 5.4%, and according to Sabnavis, this suggests that the repo rate or attitude may change by the start of the next calendar year. The European Central Bank raised its main interest rate by a quarter percent on Thursday, bringing it to 3.75%.</p>
<p>As for policy, we anticipate the RBI to retain its present posture of “withdrawal of accommodation” given that liquidity circumstances have improved as a result of the announcement of the withdrawal of the Rs 2,000 note, according to Upasna Bharadwaj, Chief Economist at Kotak Mahindra Bank.</p>
<p>Aditi Nayar, the chief economist of the Investment Information and Credit Rating Agency (ICRA), forecasts that the Consumer Price Index (CPI), or retail inflation, will top 6% by the end of the month.</p>
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