RBI Monetary Policy June 2024: Check Dates, Time and Members

RBI Monetary Policy Date and Time: The Reserve Bank of India’s Monetary Policy Committee, comprising six members, holds the crucial responsibility of determining the nation’s benchmark interest rate, known as the repo rate. This rate directly affects borrowing costs for banks and, consequently, influences the interest rates on loans for both businesses and individuals, shaping the broader economic landscape.

Also Read: Curious About RBI’s Move: Will Interest Rates Fall On June 7? Experts Weigh In

RBI Monetary Policy June 2024

RBI MPC: What does it do?

The MPC meets at least four times a year to review the current economic situation, including inflation and growth figures.

Based on this analysis, they decide whether to:

• Maintain the repo rate.
• Increase the repo rate to control inflation by making borrowing more expensive.
• Decrease the repo rate to stimulate economic growth by making borrowing cheaper.
• After each meeting, the MPC releases a policy statement explaining its decision and its rationale.

Why is it important?

The MPC’s decisions significantly impact the Indian economy:

• Inflation: By adjusting the repo rate, the MPC aims to maintain inflation within a targeted range set by the government.
• Economic Growth: Lower interest rates can encourage borrowing and investment, fostering economic activity.
• Financial Stability: The MPC’s actions influence the stability of the financial system by managing liquidity and credit flow.

RBI Monetary Policy June 2024 MPC Date & Time

The RBI MPC meeting for June 2024 is scheduled for June 5th-7th, 2024, which means it’s happening right now. However, the results with the official policy decisions will likely be announced on the last day, June 7th.

The RBI MPC convenes for a three-day meeting, culminating in a crucial policy announcement on Friday. This second bi-monthly meeting of the current financial year will determine the fate of interest rates, impacting businesses and borrowers nationwide.

Economists anticipate the MPC to hold the benchmark repo rate steady at 6.5%, balancing inflation control with economic growth.

The RBI’s policy stance on ‘accommodation withdrawal’ will also be under scrutiny, signaling future rate adjustments. The announcement is keenly awaited by businesses and borrowers, as it will influence loan costs and investment activity.

RBI MPC Members 2024

The MPC panel is headed by the RBI governor. It consists of three external members and officials of the RBI.

1. Governor of the Reserve Bank of India—Chairperson, ex officio;
2. Deputy Governor of the Reserve Bank of India, in charge of Monetary Policy—Member, ex officio;
3. One officer of the Reserve Bank of India to be nominated by the Central Board—Member, ex officio;
4. Prof. Ashima Goyal, Professor, Indira Gandhi Institute of Development Research —Member;
5. Prof. Jayanth R. Varma, Professor, Indian Institute of Management, Ahmedabad—Member; and
6. Dr. Shashanka Bhide, Senior Advisor, National Council of Applied Economic Research, Delhi—Member.

It can be noted that Shaktikanta Das’ term as the RBI Governor is set to end in December this year.