Mumbai: The bank reserve level setting panel began a three-day deliberation on Tuesday to decide on the next monetary policy in the background of the 2022-23 budget, inflation concerns and evolved the situation of geo-politics.
Reserve Governor of Bank Shaktikanta Das Headed Six-Member of the Monetary Policy Committee (MPC) is scheduled to announce policy resolution on Thursday.
The meeting will begin on Monday but was postponed by one day considering Maharashtra stated a national holiday on February 7 to lament the death of the legendary singer Lata Mangeshkar.
It is widely anticipated that MPC is likely to maintain the status quo at the benchmark interest rate or repo level.
However, experts argue that MPC can change the stance of the policy of ‘accommodating’ to ‘neutral’ and play with a reverse-repo level as part of the process of normalizing liquidity.
If the RBI maintains the status quo at the policy level on Thursday, it will be the ten consecutive time because the level remains unchanged.
The central bank has last revised the policy rate on May 22, 2020, in an off-policy cycle to play a request by reducing the interest rate to historic low.
According to brick rankings, the RBI can continue to accommodate the current level of policy at the coming policy meeting.
“We hope that MPC will begin to increase the policy level that began by normalizing the corridor policy between the repo and reversing the repo level.
We hope the RBI climbs the reverse repo level at the April 2022 policy meeting,” he said.
The prospect of inflation and growth can remain unchanged for current fiscal, while the statement is awaited for the front guidance about inflation and GDP for the next fiscal, he added.
The last MPC held in December 2021 has maintained its benchmark interest rate unchanged at 4 percent and decided to continue its accommodating attitude towards the background of concern over the emergence of the new Coronavirus variant.
MPC has been assigned by the government to maintain inflation in the range of 2-6 percent.
Citing a massive surge in credit growth during the first half and falls steeper in deposits and the results of the increase in money, coupled with a record of high loans, SBI reports have called for an increase of 20 bps in the reverse repo level outside the MPC outside MPC Ambit so that the central bank Find buyers to flood new debt paper.
Budget 2023 has set a dirty central loan at RS 14.3 Lakh Crore and for FY22 at Rs 10.5 lakh Crore, lower than RS 13.5 lakh crore this fiscal, while together with America, a dirty loan will be Rs 23, 3 lakh crore and clean will be the rs of 17.8 lakh crore, the report said.
The budget tried to pay back the next fiscal fiscal rs 3.1 lakh, up from RS 2.7 Lakh Crore Fiscal, he added.
While the first half of FY22 itself, signs of credit recovery were seen, the latest data for this week until January 14, 2022, showed all additional credit banks grew by Rs 5.46 lakh Crore, more than double the RS 2.72 lakh Crore in the last fiscal same period, the report said, adding opposed to this, additional deposit growth was only Rs 8.6 lakh crore, down from Rs 10.5 lakh crore.