The Reserve Bank of India (RBI) will on Friday announce the results of its June monetary policy review. This statement will draw scrutiny from market participants looking for signals on borrowing rates, inflation risks and economic performance, as rising crude and a sliding rupee weigh on sentiment.
The three-day meeting of the RBI's rate-setting Monetary Policy Committee (MPC) began on June 3 and concludes on June 5. The outcome of the deliberations will be announced at 10 am on Friday, before Governor Sanjay Malhotra provides further insights during a press conference at 12 pm
At its April policy meeting, the MPC voted unanimously to leave the benchmark repo rate unchanged at 5.25%. The panel also opted to maintain a neutral policy stance, while keeping the Standing Deposit Facility (SDF) rate at 5% and the Marginal Standing Facility (MSF) rate at 5.5%.
ALSO READ: RBI Likely To Hold Rates, Raise Inflation Forecast: HSBC's Pranjul Bhandari
The ongoing confrontation between the US and Iran, coupled with disruptions to shipping routes through the Strait of Hormuz, has triggered a surge in crude prices. For India, this has heightened inflationary risks while exerting downward pressure on the rupee.
Economists polled by Reuters largely anticipate no change in the RBI's key lending rate this month, with the repo rate expected to remain at 5.25%. Even so, market experts suggest that concerns over inflation and currency weakness may influence future monetary policy decisions.
Any change in interest rates can influence home and vehicle loan repayments, fixed deposit earnings, corporate financing costs and overall consumer demand, affecting individuals and businesses alike.
Investors and economists closely examine the RBI's economic outlook alongside its interest-rate verdict. Fresh projections on inflation and growth, coupled with policy guidance, can influence expectations regarding future borrowing costs.
ALSO READ: RBI MPC Preview: Citi Sees Two Rate Hikes Ahead, Goldman Expects Hold With Hawkish Guidance
When And Where To Watch Governor Sanjay Malhotra's Speech Live?
Governor Sanjay Malhotra will announce the committee's decision at 10 a.m. on Friday, including any action on benchmark interest rates. He will subsequently address the media in a press conference.
Viewers can watch the RBI's policy announcement on NDTV Profit YouTube and other social media platforms.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.