New Delhi: Following a three-day meeting of its Monetary Policy Committee, the Reserve Bank of India is expected to announce the increase in its benchmark interest rate, known as the repo rate, on Thursday. Tomorrow at 10 a.m., Governor Shaktikanta Das will present the results of the sessions, followed at noon by a news conference. The Monetary Policy Committee meeting of the RBI took place on April 3, April 5, and April 6 to begin the organization's first bimonthly review of the new fiscal year.

A year is divided into six bimonthly reviews of the central bank's monetary policy. Also, there are out-of-cycle reviews, where the central bank holds extra sessions in urgent situations. In order to control inflation, the RBI's Monetary Policy Committee (MPC) decided to increase the repo rate by 25 basis points, to 6.5 percent, at its most recent meeting in early February. Since May 2022, the RBI has increased the repo rate—the interest rate at which it loans to banks—by a total of 250 basis points.

The RBI is anticipated to cease raising interest rates, and the current repo rate of 6.5% may serve as the terminal rate for the time being, according to SBI Research's most recent Ecowrap study.

At the latest MPC of the RBI in early February, it decided to raise the repo rate by 25 basis points to 6.5 percent to manage inflation. Raising interest rates is a monetary policy instrument that typically helps suppress economic demand, thereby helping the inflation rate decline.

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