The three-day Monetary Policy Committee (MPC) meeting is scheduled to start on August 3 with the RBI governor Shaktikanta Das and other MPC members present. On August 5, the MPC’s decision on the bimonthly monetary policy for FY23 will be made public. The largest issue at hand is inflation, which has reached a multi-year high and is pressuring major central banks around the world to raise interest rates.
With an unexpected 40-basis-point increase in the repo rate in May and another one of 50 basis points in June, RBI started the rate hike cycle this year. As of now, the Central bank has increased the repo rate by 90 basis points as opposed to the US Fed, which has increased its key rate by 225 basis points to combat persistent inflation.