Monetary Policy Committee (MPC) is set to meet from December 4 to 6 and is expected to keep the repo rate unchanged.

The December MPC will convene from 4 to 6 December, with the decisions announced live by Governor Shaktikanta Das at 10 AM on December 6. The announcement can be streamed live on the RBI’s YouTube, Facebook, and X platforms. Updates will also be available on the Business Standard website and social media platforms.

The Reserve Bank of India( RBI ) is set to hold its Monetary Policy Committee (MPC) for  the December. This year, the MPC has already convened in April, June, August, and October. The final meeting for FY25 is slated for February 2025.

Kotak recommends a staggered 50-bps CRR cut at the upcoming RBI MPC meet, which would inject approximately Rs 1.2 lakh crore of liquidity, signaling the start of a monetary easing cycle.

The RBI’s Monetary Policy Committee, chaired by Governor Shaktikanta Das, will announce its decision on December 6. With retail inflation exceeding 6%, the central bank is likely to maintain the repo rate at 6.

The government is yet to confirm whether Das, who was first appointed in 2018 and given a three-year extension in 2021, will receive another term.

The benign outlook of headline CPI inflation in medium term may help the members on the MPC to think about key interest rate cut in its upcoming meeting that concludes on December 6. The move is likely to ease liquidity conditions.

According to the report, while the Indian economy faces incremental slowing of growth and geopolitical risks, a knee-jerk reaction such as an immediate rate cut might not be prudent.

Experts suggest that while a rate cut in December seems unlikely, a reduction in the Cash Reserve Ratio (CRR) could be on the cards to support liquidity in the system.

Experts expect the central bank to also lower its growth projections in the upcoming MPC meeting after lower-than-expected GDP numbers for the September quarter