RBI may keep repo rate stable for the ninth time; Monetary Policy Committee meeting from 6th, result on 8th August

The Reserve Bank of India may keep the repo rate unchanged for the ninth consecutive time. The meeting of the central bank's Monetary Policy Committee (MPC) will begin on 6th August and its decisions will be announced on 8th August. Analysts say that RBI's problem has increased due to the high level of food inflation in recent months. In such a situation, there is no scope for a reduction in rates till October.

According to analysts, RBI's scope of maintaining rates at the current level will continue even in the future due to the boom in economic activities. According to the Bank of Baroda report, the repo rate will be reduced only when the RBI is convinced that the inflation pressure is reducing or may be reduced further. According to the report, food inflation continues to remain high. In June, retail inflation reached a four-month high of 5.1%. In May, it was at 4.8%. With this, the inflation rate has remained above the RBI's target of four percent for the 57th consecutive month.

Most of the increase in inflation in the last few months has been due to food inflation. The report said that the prices of vegetables and pulses have increased by more than 10% in the last 8 months and 13 months. In such a situation, the hope of a reduction in main inflation is being dashed. Apart from these, tomatoes, potatoes and onions are also constantly putting pressure on inflation. Their prices had increased by more than 50% in July. Due to this, there is little hope of getting relief from inflation in the coming time.

The report said that no change is expected in the repo rate or RBI's stance before December. RBI will keep an eye on the upcoming data. If something positive is seen in it, then the repo rate may be cut. However, there is no possibility of this before December.