The Reserve Bank of India (RBI) will today announce its first monetary policy review for the fiscal year 2022-23. RBI Governor Shaktikanta Das will have a press conference at 10 a.m. to announce the central bank’s monetary policy. The Monetary Policy Committee (MPC), chaired by Das, began its bi-monthly assessment on April 6. The MPC meeting will come to an end on April 8.

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The RBI is expected to keep key lending rates steady and maintain an accommodative monetary stance. However, in light of retail inflation approaching its tolerance limit and global uncertainty, the RBI may reverse its stance, according to CNBCTV18.

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In the last ten meetings, the MPC has not changed the repo rate. The RBI last reduced the repo rate by 40 basis points in May 2020. The short-term lending rate, sometimes known as the repo rate, is now at 4%. Furthermore, the reverse repo rate was kept at 3.35%. The inflation estimate is expected to be raised by the MPC.

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The RBI would most likely postpone its first interest rate hike until August, according to a Reuters poll. If rates remain constant, markets are expected to remain calm and may even experience a relief bounce.

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The central bank agreed earlier in February to maintain its accommodative stance for as long as it was needed to sustain growth while also mitigating the impact of COVID-19 on the economy. Inflation was expected to average 4.5% in 2022-23, according to the RBI.

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On the other hand, the minutes of the US Federal Reserve’s March meeting were revealed on Wednesday, revealing a growing fear among officials that inflation has spread throughout the economy, necessitating tighter monetary policy.