Unveiling the RBI MPC Meeting: Anticipating Stability Amidst Global Economic Waves

The Reserve Bank of India's Monetary Policy Committee (MPC) is set to convene its first meeting of the year, starting on February 6, 2024. Chaired by RBI Governor Shaktikanta Das, the committee comprises six members and will conclude its deliberations on February 8, 2024, with the decision announcement scheduled for 10 am on Thursday.

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Status Quo on Repo Rate

Over the last five consecutive meetings, the RBI MPC has opted to maintain the repo rate at 6.5 percent. The most recent adjustment to this benchmark interest rate occurred in February 2023 when it was increased from 6.25 percent to 6.5 percent. Despite expectations for potential changes, the repo rate has remained unchanged, prompting speculation about the committee's stance following the Interim Budget.

Market Insights and Expectations

Siddhartha Khemka, Head of Retail Research at Motilal Oswal, suggests that the RBI is likely to uphold the status quo, mirroring the approach of the US Federal Reserve in its recent meeting. Similarly, a report by SBI Research supports this view, anticipating a continuation of the pause on the repo rate.

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Factors Influencing Decision

Key factors influencing the expectation for maintaining the current repo rate include:

1. ​Global Economic Conditions: The decision aligns with the cautious approach observed by major central banks globally, including the US Federal Reserve.

2. ​US Non-Farm Payroll Data: Strong data indicating robust employment figures and wage growth in the United States have influenced market expectations, potentially delaying anticipated rate cuts.

3. ​Policy Consistency: Continuation of the current repo rate reflects a commitment to maintaining stability and monitoring economic indicators for future adjustments.


As the RBI MPC convenes for its meeting, market participants await the official announcement on the repo rate decision. With prevailing sentiments suggesting a continuation of the status quo, stakeholders will closely monitor the committee's assessment of economic conditions and its implications for monetary policy. The announcement on Thursday at 10 am will provide clarity on the committee's decision and its potential impact on the financial landscape.

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