RBI MPC Meeting December 2024 Live Updates:RBI Governor Shaktikanta Das will announce the Monetary Policy Committee’s decision on the repo rate at 10 am today. With GDP witnessing a seven-quarter low, the central bank is expected to announce a cut in the cash reserve ratio (CRR). However, the repo rate – the rate at which the RBI lends to other banks – is likely to remain unchanged.
The announcement comes amid economic challenges such as low GDP growth, inflation and concerns about tight liquidity conditions in the banking system. GDP slowed to a seven-quarter low of 5.4 percent in the July-September 2024 quarter.
The CRR, currently at 4.5%, is the percentage of a bank’s total deposits that it is required to hold in liquid cash as reserves with the RBI. It is a tool used by the RBI to manage inflation and prevent excessive borrowing. The MPC decides on the stance of the repo rate policy, the responsibility for liquidity rests with the RBI alone. RBI may cut CRR by 25 basis points (bps) or 50 bps, analysts said.
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