October 04, 2023 / 08:47 AM IST
Sensex Today | MPC likely to hold repo rates at 6.50% in October policy: Economists poll
The Monetary Policy Committee (MPC) is likely to hold the repo rate at 6.50 percent and maintain a ‘Withdrawal of Accommodation’ stance in the upcoming October monetary policy, a Moneycontrol poll of at least 10 economists, bankers and fund managers has shown.
This is on account of the moderation in Consumer Price Index (CPI) Inflation in August and stable economic activity, a majority of the economists who participated in the poll, said.
“The RBI will have little reason to change the current policy settings, and we expect the MPC to keep the repo rate unchanged at 6.5 percent, flagging waning core inflation, steady economic activity, and some risks of more supply-related price shocks, providing a little cue for a change in policy thinking,” said Rahul Bajoria, MD & Head of EM Asia (ex-China) Economics, Barclays.
“The RBI monetary policy committee (MPC) is expected to extend its hawkish pause and keep the ‘withdrawal of accommodation’ stance, at the upcoming policy review on October 6,” said Radhika Rao, Senior Economist, DBS Bank India. The six-member Monetary Policy Committee (MPC) of the RBI will meet from October 4 to 6, to decide on the interest rates.
