RBI Monetary Policy Meeting October 2024: The newly reconstituted Monetary Policy Committee (MPC) of the Reserve Bank of India with three new appointed external members will commence its maiden meeting on Monday, October 7.
It is widely anticipated that the MPC will keep interest rate unchanged despite change in composition of external members.
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RBI Monetary Policy Meeting October 2024 date and time
The next RBI Monetary Policy Committee meeting for FY 2024-25 will start on Monday, October 7 while he outcome of the three-day meeting of the MPC would be revealed by MPC Chairman RBI Governor Shaktikanta Das on next Wednesday, October 9.
Das will announce the decision of the six-member Monetary Policy Committee (MPC) on Wednesday at around 10 am.
RBI Monetary Policy Meet October 2024: Where to watch LIVE address of RBI Governor Shaktikanta Das
The live streaming of RBI’s Monetary Policy announcement will be streamed LIVE on RBI’s official YouTube channel – https://www.youtube.com/@reservebankofindia593.
Readers can also watch the live updates of RBI MPC announcement on ET NOW and ET NOW Swadesh’s TV channel, website and social media channels, including YouTube, X and Facebook.
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RBI Monetary Policy Committee Meet October 2024
This would be tenth time in a row when the Reserve Bank of India (RBI) will maintain status quo as far as policy rate is concerned. The MPC last revised interest rate in February 2023, when it was hiked to 6.5 per cent.
Apart from the chairman, the other internal members are RBI Deputy Governor in charge of monetary policy Michael Debabrata Patra and Executive Director monetary policy department of RBI Rajiv Ranjan.
On last Tuesday, the government appointed Ram Singh, Saugata Bhattacharya and Nagesh Kumar as external members to the MPC.
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RBI Monetary Policy October 2024 Meeting Expectations
According to a report by Nuvama, the central will shift its monetary stance to ‘neutral’ from current ‘withdrawal of accommodation’ in credit policy this month, rate cuts likely to commence from December.
As per the report the Monetary Policy Committee (MPC) is likely to maintain the repo rate at 6.5 per cent in its upcoming sitting.
However, several factors, including a slowdown in economic activity and benign core inflation, are likely to prompt the central bank to soften its stance, the report added.
On the similar lines, a report of RBI State Bank of India (SBI) stated that the RBI is unlikely to announce any rate cuts in its upcoming monetary policy meeting with India experiencing strong economic growth.
The report suggests that domestic economic conditions are the primary factor influencing the central bank’s decisions. With India experiencing strong economic growth, potentially higher than its long-term potential output, the case for maintaining the current interest rates is strong, and the RBI may choose to pause rather than lower rates. “Domestic conditions are paramount and with robust growth higher than potential output, case of pause exists” said the report.
Speaking to expectation from real estate sector from the RBI MPC meet, Ramani Sastri , Chairman & MD, Sterling Developers said, “The real estate sector has witnessed robust growth in recent years in the context of continuous demand. The repo rate plays a crucial role in determining home loan interest rates and hence, in this context, rate cut would serve as a big boost to homebuyer sentiment and enable better affordability, which is an extremely sensitive factor in the housing market. We hope to see lower interest rates which will provide an impetus to not just real estate and housing demand but across industries and economic growth. Moreover, as the festive season approaches, it presents a golden opportunity to reinvigorate the real estate market with reduced interest rates ahead of the festive season, which is a crucial period for real estate sales.”
“As India’s economy continues to grow, there is no hesitation among the homebuyers to invest in residential real estate for long-term returns. Overall, the market outlook is certainly positive and given the confidence built this year, we do believe that markets will continue to see sustained growth over the next few years, providing appealing prospects for both first-time buyers and seasoned investors. The real estate sector is poised to play a significant role and contributing to the country’s economic expansion,” Sastri added.
