Reserve Bank of India (RBI)’s Monetary Policy (MPC): Repo rate is unlikely to change for the seventh time in a row, inflation forecast may be revisedRepo rate is unlikely to change for the seventh time in a row, inflation forecast may be revised |

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The Monetary Policy Committee of the central bank RBI will announce its bi-monthly policy review today on 6 August.  Market experts believe that the Reserve Bank of India may keep the repo and reverse repo rates stable in view of the possibility of a third wave of the corona epidemic.  If this happens, it will be the seventh time in a row that the central bank will not change rates.  Also, RBI may revise its projection of inflation as it has crossed the upper limit of the central bank.
 
In the previous MPC, the repo rate was kept constant at 4%
 
   Inflation rose to 6.3 per cent in May 2021.  However, in the very next month in June, there was some decline in it and it came down to 6.26 per cent.  In the last policy meeting, RBI had projected the Consumer Price Index (CPI) for the financial year 2021-22 at 5.1 per cent.  Under this estimate, the CPI for July-September is estimated at 5.4 per cent.  In June 2021, RBI did not change the interest rates in its previous MPC.  The repo rate was kept constant at 4 per cent and the reverse repo rate at 3.35 per cent.‚Äč

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