RBI won’t revise repo rate, decision to be unanimous: Economists

Despite food inflation and existance of continued geo-political and climate risks, the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) will not change the interest rate from the current 6.5 per cent, economists have saif. They also said the benchmark repo rate will remain constant till the last quarter of FY24. Predicting that RBI will not change the repo rate, Bank of Baroda’s Chief Economist Madan Sabnavis said: “The decision will be unanimous. Inflation could go towards 5.5 per cent to 6 per cent this month. Even in June due to edible oil prices inflation was lower at 4.8 per cent. Edible oil prices have started moving up in global markets now. With GDP growth steady at around 8 per cent this won’t be a concern. Hence, the status quo to prevail.”