Monetary Policy Split as RBI Governor Sanjay Malhotra Prepares to Announce Key Rates at 10 AM
NEW DELHI: The Reserve Bank of India (RBI) will announce its latest monetary policy decision today at 10 AM, as the three-day Monetary Policy Committee (MPC) meeting concludes. The financial sector remains sharply divided ahead of the announcement — with economists expecting a status quo, while industry leaders are hopeful for a rate cut.
What Economists Expect
Most economists believe the RBI will hold the policy repo rate at 5.5%, citing:
- Strong GDP growth at 8.2%
- Multi-year low inflation
- A stable macroeconomic environment
A report by Bank of Baroda also predicts an unchanged rate and the continuation of the RBI’s neutral policy stance.
Contrasting Signals Fuel Uncertainty
Experts say the current economic indicators give mixed cues.
Mehul Pandya, MD & Group CEO of CareEdge Ratings, told ANI:
“Strong GDP growth and multi-year low inflation are contradictory signals. Central banks don’t usually cut rates during strong economic activity, but they often reduce rates when inflation remains low.”
Industry Leaders Hope for a Rate Cut
Some industry voices believe conditions are ideal for a 25-basis-point reduction.
Rohit Arora, CEO & Co-Founder of Biz2X & Biz2Credit, said:
“With inflation easing and markets already pricing in a cut, the RBI has a strong opportunity to shift towards a supportive policy direction.”
Previous Policy Recap
In the last policy meeting on October 1, the MPC:
- Kept the repo rate unchanged at 5.5% (unanimous decision)
- Held SDF rate at 5.25%
- Continued MSF and Bank Rate at 5.75%
The MPC had met on Sept 29–30 and Oct 1 to evaluate the economic outlook.
What’s at Stake Today?
The upcoming announcement will determine whether the RBI:
- Starts a rate-cut cycle, or
- Prioritises economic stability, given strong growth momentum
Financial markets, borrowers, and industry stakeholders will be closely watching the governor’s speech.
Originally published on 24×7-news.com.
