The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) will reveal its bi-monthly policy decisions on December 6, 2024, at 10:00 am. This announcement comes after a three-day meeting that began on December 4, as the RBI addresses various economic challenges.

When and Where to Watch the Live Address

RBI Governor Shaktikanta Das will present the live policy address at 10:00 am, sharing key decisions and their reasoning. The live stream will be available on the RBI’s official YouTube channel, as well as on its social media platforms, including Facebook and X (formerly Twitter). A press conference will follow at 12:00 pm, also streamed across these platforms.

What to Expect from the MPC Meeting

The MPC meeting is set against a backdrop of slowing GDP growth, high inflation, and lower production levels. These factors have led to growing expectations for policy adjustments.

Several economic experts have weighed in on what the RBI might do:

• Ashok Gulati, an agricultural economist, pointed out that inflation driven by vegetables is beyond the RBI’s control. He also mentioned that the Q2 GDP growth data suggests the need for policy changes, potentially including a repo rate cut.
• Mandar Pitale, Head of Treasury at SBM Bank India, believes the RBI could focus on boosting liquidity through measures like a phased reduction in the Cash Reserve Ratio (CRR) and open market operations (OMO), instead of cutting rates immediately.
• Atul Monga, CEO of BASIC Home Loan, expects the repo rate to stay unchanged. He highlighted that maintaining stable interest rates is beneficial for housing demand, especially in the mid-range and luxury segments.

Key Decisions to Watch For

The market will be watching for insights on the following:

• Repo Rate: It is expected to stay at 6.5%, as it has for the last 10 MPC meetings.
• Liquidity Measures: Potential adjustments in CRR or OMO to improve liquidity.
• Inflation Strategy: The RBI’s approach to tackling persistent inflation.

Looking Back at the Last Policy Meeting

In October, the RBI kept the repo rate at 6.5% for the 10th consecutive time. The Standing Deposit Facility remained at 6.25%, and the Marginal Standing Facility was set at 6.75%.

The decisions made on December 6 will be pivotal in shaping India’s monetary policy, affecting inflation control, liquidity, and overall economic growth.