RBI monetary policy 2022: Key things to expect tomorrow
India Today
A Reuters poll of economists forecast that the RBI would raise the reverse repo rate - the rate at which it borrows from banks - to 3.55 per cent from 3.35 per cent, narrowing the corridor between it and the repo rate to 45 bps.
The Reserve Bank of India (RBI) is expected to maintain its repo rate steady on Thursday but several economists are expecting an increase in the reverse repo rate as part of a process to reduce surplus liquidity poured into markets earlier in the pandemic.
The key meeting of RBI's monetary policy committee is set to end on Thursday, having been delayed after Maharashtra state declared a day of mourning on Monday following the demise of legendary singer Bharat Ratna Lata Mangeshkar.
REPO RATE, REVERSE REPO RATE
A Reuters poll of economists forecast that the RBI would raise the reverse repo rate - the rate at which it borrows from banks - to 3.55 per cent from 3.35 per cent, narrowing the corridor between it and the repo rate to 45 bps.
The repo rate is expected to go up by 25 bps at the subsequent meeting in April according to a little over half the respondents, while two-thirds expect one more similar sized increase later in the year, Reuters reported.
"After months of incremental moves, we think the RBI will take a decisive step towards policy tightening by hiking the reverse repo rate at the conclusion of its MPC meeting," said Shilan Shah, senior India economist at Capital Economics.
EXPECTATIONS FROM RBI
