Mumbai :As the Indian stock market digests the outcomes of the 2024 Lok Sabha Elections, all eyes are now on the upcoming monetary policy decision by the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC). The RBI MPC's three-day meeting began on Wednesday, June 5, and the decision is scheduled for Friday, June 7.

The repo rates have remained unchanged for over a year now, with the RBI's last repo rate hike to 6.5 percent occurring in February 2023. While many experts anticipate the central bank to maintain its current repo rate and policy stance, the June MPC meeting holds significance as market participants await insights into inflation and growth dynamics from RBI Governor Shaktikanta Das' statement.

India's Consumer Price Index (CPI)-based inflation, also known as retail inflation, fell to an 11-month low of 4.83 percent in April, down from 4.85 percent in March, largely due to declining crude oil prices. The Indian economy showed robust growth last year, with the gross domestic product (GDP) for FY24 surpassing expectations at 8.2 percent.

Experts suggest that given India's strong macroeconomic outlook, the RBI may maintain elevated interest rates for an extended period, provided inflation remains above its target of 4 percent.

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