RBI MPC Updates: Repo rate unchanged at 6.5%, UPI Lite payment limit raised to ₹500

India's six-member monetary policy committee (MPC) members appeared increasingly divergent in their views on the future course of rate hikes, with some external members arguing that further tightening could hamper the economic recovery, the minutes of their June meeting showed.

The Indian rupee opened flat at 82.81 against US dollar ahead of the announcement of RBI policy.

Market experts and analysts have been closely monitoring various factors that might influence the RBI's decision.

These include inflation trends, the pace of economic growth, global market volatility and potential policy adjustments to address any emerging challenges.

Monetary Policy Committee (MPC) meeting which began on August 8, has been closely watched by economists, investors, and financial markets alike, as they eagerly await the central bank's guidance on India's economic trajectory.

The meeting holds paramount importance against the backdrop of the evolving economic landscape, both domestically and globally.

RBI Governor Shaktikanta Das is scheduled to make the official announcement of the MPC's decision on Thursday, August 10, at 10:00 am.

The Indian benchmark equity indices, Sensex opened lower at 65,770 points; Nifty at 19,573 ahead of the policy announcement.

The Indian rupee was little changed on Thursday before the Reserve Bank of India's policy decision, which will be followed by the vital U.S. inflation data.

The rupee, similar to how it has been over the last two days, was in a narrow range. The currency was nearly unchanged from 82.8150 on Wednesday and the 10-day realized volatility is now back below 3%. It has been in a 14 paisa range so for this week.

Every one of the 42 economists who participated in a Bloomberg survey has predicted that the Reserve Bank of India’s six-member monetary policy committee will maintain the repurchase rate at 6.50% in the upcoming Thursday meeting. The policymakers are closely monitoring the potential impact of El Nino, a phenomenon that typically leads to drier weather conditions and could influence crop yields.

Since May 2022, the RBI has raised the repo rate by 250 basis points (bps) to tackle rising inflation. Central banks globally opted for aggressive policy tightening in a war against soaring inflation.

The Reserve Bank of India (RBI) Governor Shaktikanta Das is widely expected to keep the repo rate unchanged at 6.5% today. In its previous two policies, RBI’s Monetary Policy Committee (MPC) had maintained a status quo on interest rates.

The Reserve Bank of India (RBI) Governor Shaktikanta Das is set to announce the third bi-monthly monetary policy for FY24 today. The three-day meeting of the six member Monetary Policy Committee (MPC) of RBI was held from August 8 to 10.

The last MPC meeting was held on June 6-8 when the central bank unanimously decided to keep the policy repo rate unchanged at 6.50 per cent.