RBI MPC meeting: The Reserve Bank of India (RBI) will announce its June monetary policy decision on Friday, June 5, with investors keenly tracking signals on interest rates, inflation, and economic growth amid concerns over rising crude oil prices and a weakening rupee due to the Middle East crisis.
The six-member Monetary Policy Committee (MPC), led by RBI Governor Sanjay Malhotra, commenced its three-day deliberations on June 3 and is scheduled to reveal its policy outcome at 10 a.m. on June 5.
During its previous policy meeting in April, the MPC unanimously opted to keep the repo rate unchanged at 5.25%, while maintaining a neutral policy stance. The Standing Deposit Facility (SDF) rate remained at 5%, and the Marginal Standing Facility (MSF) rate was retained at 5.5%.
At the April review, the central bank projected India’s GDP growth at 6.9% for FY27 and estimated FY26 growth at 7.6%. It also revised its retail inflation forecast for FY27 upward to 4.6%, compared with its earlier estimate of 4.2%.
It remains to be seen how the central bank expects the impact of the West Asia playing out for the rest of the fiscal as the US-Iran tensions have now entered its fourth month.
RBI MPC meeting: Date and time
The RBI’s bi-monthly MPC meeting is set to take place from Wednesday, June 3 to Friday, June 5. The central bank will announce its policy decision at 10:00 a.m. on June 5, after which RBI Governor Sanjay Malhotra will address the media in a press conference scheduled for 12:00 p.m. the same day.
RBI MPC meeting: Where to watch RBI’s announcement?
The RBI Governor’s policy statement will be broadcast live on the RBI’s official YouTube channel from 10:00 a.m. Viewers can tune in on the same platform to watch his address to the media.
You can also track live updates of the RBI announcement with Mint.
What to expect from upcoming RBI MPC announcement?
RBI’s June policy meeting comes amid rising geopolitical tensions in West Asia, which have driven global crude oil prices and added pressure on the Indian rupee.
Since the conflict began earlier this year, the rupee has weakened to record lows, while the surge in oil prices has heightened concerns over imported inflation in India, the world’s third-largest crude oil importer.
Market experts believe that the central bank is likely to keep the repo rates unchanged in the upcoming MPC policy announcement, despite all the factors.
“We expect the RBI to maintain status quo on the repo rate in the upcoming MPC meeting. While recent developments such as higher crude prices, fuel price revisions, rupee weakness and geopolitical uncertainties have added to inflationary concerns, much of the current pressure appears to be supply-driven. In such an environment, the RBI is likely to remain watchful rather than react with immediate policy tightening,” said Gaurav Garg, Research Analyst at Lemonn Markets Desk.
Meanwhile, Sugandha Sachdeva, Founder of SS WealthStreet, believes that the stance of the RBI is likely to be hawkish in the upcoming meeting.
“The central bank is expected to adopt a cautious approach. While supporting growth remains important, containing inflation and maintaining currency stability are likely to remain key priorities. Given the uncertain global backdrop and the risk of imported inflation from elevated energy prices, we expect the RBI to keep the repo rate unchanged at its upcoming monetary policy meeting scheduled for Friday, but the stance of the RBI is likely to be hawkish,” Sachdeva said.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
