RBI Monetary Policy Meeting August 2023 Live Updates: MPC likely to continue with status quo on policy repo rate

The six-member monetary policy committee (MPC) of RBI is likely to continue with status quo on the policy repo rate to rein in retail inflation.

If the MPC holds the rate at its meeting, which will take place from August 8 to August 10, it will be the third consecutive time it would have kept the repo rate unchanged at 6.50 per cent.

Repo rate is the interest rate at which banks borrow funds from Reserve Bank of India (RBI) to overcome short-term liquidity mismatches. The MPC last raised this rate from 6.25 per cent to 6.50 per cent at its meeting in February.

To recall, retail inflation based on Consumer Price Index (CPI) slowed down to 5 month low of 6.71 per cent in July as against 7.01 per cent in June.

Still, it is higher than the upper band of targeted inflation range (2-6) per cent which triggered expectation of another hike in policy interest rate.