Possibility of another increase of 0.50 percent in repo rate to check inflation
A three-day meeting of the Monetary Policy Committee of the Reserve Bank of India began on Wednesday amid the possibility of another hike of 0.50 per cent in the repo rate to check inflation.
The RBI may also increase the repo rate in line with the increase in interest rates by other major central banks, including the US central bank Fed Reserve. Based on the recommendations of the MPC, the RBI had increased the repo rate by 0.50 percent in June and August.
Earlier in May, the central bank had increased the interest rate by 0.40 percent in its sudden meeting. The meeting of the MPC, chaired by Reserve Bank Governor Shaktikanta Das, will be held from September 28 to 30. The decision on rates will be announced on Friday i.e. 30 September.