RBI Monetary Policy Meeting: Zee Business poll - experts see 50 bps hike

RBI Monetary Policy Rates: The Reserve Bank of India’s (RBI) monetary policy committee (MPC) is set to announce its decision on Friday i.e. September 30. The central bank has already raised the repo rate by 140 basis points (bps) since May. There are speculations that the RBI may take cues from its global counterparts, including the US Federal Reserve, to raise interest rates for the fourth time in a row. The present repo rate is 5.4%. Ahead of the MPC decision, Zee Business conducted a poll wherein experts unanimously said that the central bank will hike the benchmark lending rate. 

Zee Business' poll outcome:

Experts unanimously agreed that there will be 0.5% increase in the repo rate this time. If this happens, it will take the key rate to a three-year high of 5.9%.

Will there be a change in RBI's stance?

All the experts feel that RBI can adopt a more aggressive stance considering the fact global central banks, including US Federal Reserve, have adopted more aggressive monetary policies of late. 

शुक्रवार को RBI की मॉनेटरी पॉलिसी का ऐलान होगा#RepoRate में कितनी होगी बढ़ोतरी?

क्या महंगाई दर का अनुमान बदलेगा?

क्या GDP अनुमान बदलेगा?
 

#rbipolicy पर एक्सपर्ट पोल, देखिए दीपांशु भंडारी के साथ@deepdbhandari @Neha_1007 #MonetaryPolicy #CreditPolicy #RBICreditPolicy pic.twitter.com/NEWvyQXxfo

— Zee Business (@ZeeBusiness) September 29, 2022

Will RBI downgrade the inflation rate projection?

75% of the experts feel that RBI will not downgrade its inflation projection while the remaining 25% feel otherwise.

Will RBI downgrade the GDP forecast?

75% of experts feel that the RBI is likely to maintain the growth forecast.

Will RBI take any decision to increase liquidity?

There is a liquidity deficit in the Indian market after 2-3 years and all the experts feel that the RBI can take some measures to tackle the liquidity deficit.

Where will India Rupee stand by end of 2022?

75% of experts feel it will settle at around 80-82 against the US dollar. However, 25% of them feel that it will settle at about 82-84.