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RBI MPC Meet: Is the central bank hinting at higher prices in near future? Here's what experts feel

^{Published on 2024-12-06 04:01:02 - Business Today}
 

• The RBI marginally increased its inflation forecast for the fiscal year to 4.8% on Friday. This adjustment came after leaving the previous forecast unchanged at 4.5% in October.

The article from Business Today discusses the recent Monetary Policy Committee (MPC) meeting of the Reserve Bank of India (RBI), where the repo rate was maintained at 6.5%. Despite this, there are indications that the RBI might be preparing for potential inflation pressures in the near future. Experts interpret the RBI's cautious stance as a signal that higher prices could be on the horizon due to several factors including global commodity price volatility, geopolitical tensions, and domestic supply chain disruptions. The MPC's decision to keep rates unchanged while expressing concerns over inflation suggests a strategy to monitor economic indicators closely before making any adjustments. Analysts believe that the RBI is adopting a 'wait and watch' approach, hinting at possible rate hikes if inflationary pressures intensify. This cautious approach is seen as an effort to balance growth with inflation control, with some experts suggesting that the central bank might be preparing for a scenario where inflation could exceed the upper tolerance limit of 6%.

Read the Full Business Today Article at:
[ https://www.businesstoday.in/personal-finance/news/story/rbi-mpc-meet-is-the-central-bank-hinting-at-higher-prices-in-near-future-heres-what-experts-feel-456429-2024-12-06 ]

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