RBI might hold the rate for the sixth time

·       The six member Monetary Policy Committee (MPC) of the Reserve Bank of India might maintain the status quo for the sixth consecutive policy review, as per the respondents in a Business Standard poll.

·       It is expected that RBI would announce its decision after a review of its policy on February 8^th 2024.

·       After raising the REPO rate by 250 basis points (bps) to 6.5 per cent between May 2022 and February 2023, the MPC hit a pause in the April review of the monetary policy.

·       It is felt that there is much of change in the global dynamics since the last policy, and thus there is little room for the RBI to move and righten amid global calm.

One of the key aspects of the meeting is going to be how the Central Bank responds to the liquidity tightness in the system.