Important meeting of RBI monetary policy next week, RBI may increase reverse repo rate: Report

Barclays says that this time the Reserve Bank of India can announce an increase in the reverse repo rate by up to 0.25 percent.

At present the reverse repo rate is 3.35 per cent.

The Monetary Policy Committee of the Reserve Bank of India from February 7 (RBI MPC meeting) is about to have an important meeting. Governor Shaktikanta Das on 9 February (Shaktikanta Das Will inform about the decisions taken in the MPC meeting. British brokerage firm Barclays says that this time the Reserve Bank of India reverse repo rate (reverse repo rate) may announce an increase. He said that the RBI can take this decision to reduce the access liquidity from the system. At present the repo rate is 4 per cent, while the reverse repo rate is 3.35 per cent. According to Barclays, the reverse repo rate can be increased by 0.20-0.25 basis points.

Barclays has said in its report that while presenting Budget 2022, the government has focused on capital expenditure. The capital expenditure for the financial year 2022-23 has been increased by 35 per cent. The price of crude oil is increasing continuously in the international market. This has a direct effect on the rate of petrol and diesel. However, due to the assembly elections in 5 states, the price of petrol and diesel is not likely to increase till March. After that the oil marketing companies will pass it on to the customers and there will be a rapid rise in inflation.

To reduce the gap between repo and reverse repo

Analysts also say that the impact of the Omicron variant on the economy is not visible much. In such a situation, the Reserve Bank will work towards reducing the gap between the repo rate and the reverse repo rate. At present, there is a gap of 0.65 percent between the repo rate and the reverse repo rate. It is believed that this year the Reserve Bank will first bring down this gap to 0.25 percent. In the current financial year, between August-December, RBI can increase the repo rate from 4 per cent to 4.75 per cent.

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