RBI Expected to Maintain Policy Rate Amid Rising Inflation and Slowing Growth

The Reserve Bank of India's monetary policy committee, led by Governor Shaktikanta Das, is expected to keep the repo rate unchanged in its upcoming meeting on December 6.

A recent poll conducted by Moneycontrol suggests that the central bank will maintain the policy rate for the 11th consecutive time due to concerns about inflation.

Economic growth has also weakened, with the latest data showing a slowdown to 5.4 percent year-on-year in the second quarter of FY25, the lowest growth rate in seven quarters.

This decline is attributed to reduced expansion in both the manufacturing and consumption sectors, which adds complexity to the monetary policy landscape as the MPC prepares for its bi-monthly meeting that started on December 4.

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