The Reserve Bank of India (RBI) will hold its bi-monthly monetary policy meeting on August 8-10, 2023. The policy decision will be announced by RBI Governor Shaktikanta Das on August 10 at 10:00 AM IST.
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| RBI Governor Shaktikanta Das |
What is the next monetary policy of RBI in 2023
The meeting will be held against the backdrop of rising inflation in India. The Consumer Price Index (CPI) inflation in June 2023 was 7.01%, which is above the RBI's target of 4%. The RBI is expected to take some measures to contain inflation, but it is not clear what these measures will be.
Some experts believe that the RBI may raise the repo rate by 25 basis points. The repo rate is the rate at which the RBI lends money to commercial banks. A higher repo rate will make it more expensive for banks to borrow money, which will in turn lead to higher interest rates for consumers and businesses.
Other experts believe that the RBI may keep the repo rate unchanged, but it may adopt other measures to contain inflation, such as selling government bonds or increasing the cash reserve ratio (CRR). The CRR is the percentage of deposits that banks have to keep with the RBI. A higher CRR will reduce the amount of money that banks have available to lend, which will also lead to higher interest rates.
The RBI's monetary policy decision will have a significant impact on the Indian economy. It will affect interest rates, inflation, and economic growth. The markets will be closely watching the RBI's decision on August 10.
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