The Reserve Bank of India is all set to retain 6.5% short-term interest rates in its monetary policy review as inflation remains in its comfort zone and the economy’s growth rate increases steadily. The Governor of RBI, Shaktikanta will lead the 3-day deliberation of MPC from 6 to 8 December and can make the said announcement on 8th December. The RBI fixed the interest rates in Feb 2023 and has not changed it in the last 4 monetary policy review (MPC). The MPC consist of 3 members from the RBI and 3 external members.
India retains its tag of the fastest-growing economy in the world at a more-than-expected GDP of 7.6 per cent in the July-September quarter. The chief economist of the Bank of Baroda has good things to say about the news when he said, “The high growth witnessed in Q2 in GDP will provide assurance that the economy is on track. The low core inflation numbers in the last few months will provide comfort that there is no need to increase rates even while headline inflation is likely to be volatile in the upward direction”.
The Chairman of the Dhanuka group, RG Agarwal also had good to say about the news and he said that farmers and the agriculture sector in general, should take advantage of this opportunity and must embrace technological advancement and include farm mechanisation to ensure greater yield of crops.
