'RBI likely to retain 6.5% interest rate as growth comfortable, inflation in check'

MUMBAI: The Reserve Bank is likely to maintain the status quo on the short-term interest rate in its monetary policy review later this week, with inflation staying in comfort zone and economic growth moving at an accelerated pace, opined experts.

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The RBI has left the benchmark policy rate (repo) unchanged in its past four bimonthly monetary policies. The RBI had last increased the repo rate In February to 6.5 per cent, thus ending the interest rate hiking spree which began in May 2022 in the aftermath of Russia-Ukraine war and subsequent disruptions in the global supply chain resulting in high inflation in the country.

RBI Governor Shaktikanta Das-headed Monetary Policy Committee (MPC) is scheduled to begin its three-day deliberations on December 6. Das would unveil the decision of the six-member MPC on December 8 morning. The MPC meeting is scheduled for December 6-8, 2023.

India retained the tag of the world’s fastest-growing major economy, with its GDP expanding by a faster-thanexpected rate of 7.6 per cent in the July-September quarter on booster shots from government spending and manufacturing.

On expectations from the RBI’s monetary policy, Madan Sabnavis, Chief Economist, Bank of Baroda, said the central bank is most likely to maintain the status quo on rates as well as stance this time.