Reserve Bank of India (RBI) is set to convene its bi-monthly Monetary Policy Committee (MPC) meeting on February 6 and announce its monetary policy on February 8. Headed by RBI Governor Shaktikanta Das, the six-member panel will deliberate on the repo rate for three days. As per the tradition, the RBI governor will disclose MPC’s decision at 10 am on Thursday, followed by an address to the media.
Under the RBI, Act, 1934, and 2016 amendment, the central bank is entrusted with the responsibility of conducting India’s monetary policy with the primary objective of “maintaining price stability while keeping in mind the objective of growth.”
The MPC is required to meet at least four times a year to “achieve the inflation target”. All the six members are entrusted with a vote to decide on rates, with the Governor entrusted with a second vote in the case of eventuality.
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What to expect from the MPC meet?
Many economists expect India’s central bank to keep interest rates unchanged at 6.5 per cent. RBI has kept rates stable for a year now, with the last hike witnessed in February 2023. Governor Das then announced a 0.25 per cent hike in the short-term lending rate to cool down rising inflation. Driven mostly by global developments in the last few years like Covid-19 pandemic or the Ukraine war, the inflation remained either above or at the higher range of RBI’s 4-6 per cent tolerance level. December 2023 witnessed inflation cooling down to 5.69 per cent after touching 7.44 per cent in July last year.
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RBI MPC members:
1. Shaktikanta Das, Governor of the Reserve Bank of India, Chairperson, ex officio
2. Michael Debabrata Patra, Deputy Governor of the Reserve Bank of India, in charge of Monetary Policy, Member, ex officio
3. Rajiv Ranjan, Officer of the Reserve Bank of India nominated by the Central Board, Member, ex officio
4. Prof. Ashima Goyal, Professor, Indira Gandhi Institute of Development Research, Member
5. Prof. Jayanth R. Varma, Professor, Indian Institute of Management Ahmedabad, Member
6. Dr. Shashanka Bhide, Senior Advisor, National Council of Applied Economic Research, Member.
(Members 4 to 6 will hold office for a period of four years or until further orders, whichever is earlier)
Source: RBI
Where do the current rates stand?
| Policy | Rates |
| Policy Repo Rate | 6.50% |
| Standing Deposit Facility Rate | 6.25% |
| Marginal Standing facility rate | 6.75% |
| Bank Rate | 6.75% |
| Fixed Reserved Repo Rate | 3.35% |
Source: RBI
The Central Bank will livestream policy announcements by Governor Das on its YouTube and X (formerly Twitter) handle.
Meanwhile, Finance Minister Nirmala Sitharaman is set to address the central board of the Reserve Bank of India (RBI) on February 12 to highlight key points of the Interim budget presented on February 1.
