RBI Monetary Policy Committee Live: Monetary Policy Meet Today, RBI set to raise rates

RBI Monetary Policy: RBI is expected to raise its key lending rate by 35 basis points today.

New Delhi:

The Reserve Bank of India (RBI) is widely believed to raise its key lending rate by 35 basis points today as inflation remains above its tolerance range, but markets will look to its outlook for growth and prices for direction.

A strong two-thirds majority in a Reuters poll said it was too early for the central bank to monitor inflation, which slowed to 6.77% in October but above the top of the 2-6% tolerance range of the RBI remained throughout the year.

Here are the LIVE updates on the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting:

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35 basis point increase looks “imminent” from the Reserve Bank’s MPC Meet: report
The Reserve Bank of India is likely to raise rates at a smaller rate during its policy meeting, SBI Research said in its latest Ecowrap report, adding that a 35 basis point repo rate hike appears “imminent” and is the “new normal”. here.

The World Bank has revised its GDP growth forecast for India up to 6.9 percent for 2022-23, saying the economy is more resilient to global shocks.
In its India Development Update, the World Bank said the revision was due to the Indian economy’s greater resilience to global shocks and better-than-expected second-quarter earnings.

The Indian rupee has performed relatively well in 2022 compared to other emerging markets, World Bank senior economist Dhruv Sharma said Tuesday after the World Bank revised India’s GDP (gross domestic product) forecast to 6.9 percent . Read here.

The central government is on track to meet its budget deficit target of 6.4 percent of GDP for 2022-2023, thanks to strong growth in revenue collections, the World Bank said in its India Development Update on Tuesday.
High nominal GDP growth in the first quarter supported strong growth in revenue collection, particularly the Goods and Services Tax (GST), despite fuel tax cuts. Read here.

The World Bank said on Tuesday it expects inflation to reach 7.1 percent in the current fiscal year, adding that the fall in commodity prices could dampen inflationary pressures.
Indian inflation in October fell to 6.77 percent from 7.41 percent in the previous month, mainly due to lower prices in the food basket, although it remained above the Reserve Bank’s comfort level for the 10th consecutive month. Read here.