RBI Monetary Policy June 2024: Check date, time and what to expect

RBI Policy: The six-member committee tasked with setting India's benchmark interest rate, the repo rate, will meet from June 5 to June 7

RBI Monetary Policy June 2024: The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC), a six-member panel, plays a pivotal role in determining the nation's benchmark interest rate, known as the repo rate. This rate directly influences borrowing costs for banks and subsequently affects interest rates on loans for businesses and individuals, shaping the broader economic landscape.

RBI MPC: What does it do?

The MPC is required to convene at least four times a year to assess the current economic scenario, focusing on key metrics such as inflation and growth figures. Based on this analysis, the MPC decides whether to:

 

1. Maintain the repo rate.

2. Increase the repo rate to control inflation by making borrowing more expensive.

3. Decrease the repo rate to stimulate economic growth by making borrowing cheaper.

After each meeting, the MPC issues a policy statement outlining its decisions and the rationale behind them.

Significance of the MPC's decisions

The decisions made by the MPC have far-reaching impacts on the Indian economy:

- Inflation

By adjusting the repo rate, the MPC aims to keep inflation within a targeted range set by the government.

- Economic Growth

Lower interest rates can stimulate borrowing and investment, fostering economic activity.

- Financial Stability

The MPC's actions help manage liquidity and credit flow, influencing the financial system's stability.

RBI Monetary Policy June 2024: Date and time
 

The RBI MPC meeting for June 2024 is taking place from June 5 to June 7, 2024. The results, including the official policy decisions, will be announced on the final day, June 7.

This three-day meeting is crucial as it will culminate in significant policy announcements affecting businesses and borrowers across the nation. As the second bi-monthly meeting of the current financial year, it will set the course for interest rates and economic policies moving forward.

RBI Monetary Policy June 2024: What to expect?

Economists widely expect the MPC to maintain the benchmark repo rate at 6.5 per cent, balancing the need to control inflation with fostering economic growth. 

Additionally, the RBI's stance on the 'accommodation withdrawal' will be closely monitored, as it indicates potential future rate adjustments. Businesses and borrowers eagerly await this announcement, given its impact on loan costs and investment activities.

Who are the members of  RBI MPC 2024?

The MPC panel is chaired by the RBI governor and includes three external members and officials from the RBI:

- Governor of the Reserve Bank of India—Chairperson, ex officio

- Deputy Governor of the Reserve Bank of India, in charge of Monetary Policy—Member, ex officio

- One officer of the Reserve Bank of India nominated by the Central Board—Member, ex officio

- Prof. Ashima Goyal, Professor, Indira Gandhi Institute of Development Research—Member

- Prof. Jayanth R. Varma, Professor, Indian Institute of Management, Ahmedabad—Member

- Dr. Shashanka Bhide, Senior Advisor, National Council of Applied Economic Research, Delhi—Member.

       Voting in the MPC

• The MPC must convene at least four times a year.
• Every MPC meeting needs to have at least four members present to meet quorum requirements.
• Every member gets one vote in the MPC.
• In the event of a tie, the RBI governor gets a second or casting vote.