RBI MPC meet: When and where to watch, October meeting outcome and more

The Monetary Policy Committee (MPC), the rate-setting panel of the Reserve Bank of India (RBI), began its three-day meeting on Wednesday, December 4, to decide its monetary policy stance and determine crucial lending rates.

The meeting, chaired by RBI Governor Shaktikanta Das, will conclude on December 6 when Das will announce the policy decisions. The MPC will decide on key areas including repo rate, inflation and economic growth outlook and the outcome will be announced during the press release on December 6.

The repo rate was last changed from 6.25% to 6.5% in February 2023.

RBI MPC meet date and time

The RBI MPC meeting is scheduled to happen between December 4 and December 6. Governor Das will address a press conference at 10 am on Friday to announce major decisions.

RBI MPC meet: Where to watch?

The press conference after the MPC meeting will be live-streamed on RBI’s official YouTube channel as well as its official social media handles including X and Facebook.

Last MPC meeting

In the October meeting, the RBI kept repo rates steady at 6.5% for the 10th consecutive time. The central bank, in an important development, changed its monetary policy stance from ‘withdrawal of accommodation’ to ‘neutral’. This was a first in almost two and a half years, considering the last policy change announced in May 2022.

What is ‘withdrawal of accommodation’?

A withdrawal of accommodation stance is a restrictive monetary policy in which the RBI aims to maintain a lower money supply in the economy to control prices. In this, controlling inflation is given more importance over economic growth, and interest rates are increased.

What is a neutral stance?

This stance is taken when economic growth and inflation are given equal importance. It allows the apex bank to be adaptable and change rates as and when required. During this, the RBI can both increase or decrease the interest rates based on relevant data.

There are many other stances that the central bank can take like a hawkish stance, calibrated tightening and inflation targeting, among others.

What is the repo rate?

The repurchase agreement (repo rate) is the rate at which RBI provides commercial banks with short-term loans. Repo rates are increased to control inflation, as an increased rate usually leads to more expensive loans for banks and higher interest rates for customers, leading to limited spending and slower economic growth. When rates are decreased, the money supply increases as loans become cheaper for banks as well as consumers, pushing for more spending and a growing economy.

When is the next MPC meet?

The RBI holds six bi-monthly MPC meetings every year to decide on the monetary policy for the country. Usually, these meets happen in April, June, August, October, December, and February. The next MPC meet is scheduled for February 5 to February 7, 2025.