RBI Governor, SBI Chiar meets Nirmala Sitharaman ahead of MPC panel meeting

Governor meets Finance Minster: Reserve Bank Governor Shaktikanta Das met with Finance Minister Nirmala Sitharaman today ahead of the central bank's upcoming interest rate-setting panel meeting scheduled for next month.

Meanwhile, Sitharaman also held discussions with Sebi Chairperson Madhabi Puri Buch at her North Block office, as confirmed by a statement from Sitharaman's Office on X. These deliberations come amidst industry advocacy for a potential interest rate reduction, coupled with notable fluctuations in the stock markets.

The RBI has maintained the benchmark interest rate, or repo rate, at 6.5 per cent since February 2023.

The Das-led Monetary Policy Committee (MPC) is set to convene from April 3-5, marking its first session for the 2024-25 fiscal year. During this meeting, the committee is expected to outline the inflation and growth trajectory for the forthcoming financial year commencing April 1.

In its recent policy review, the RBI forecasted a GDP growth rate of 7 per cent and an average inflation rate of 4.5 per cent for 2024-25.

The Indian economy is reported to have expanded by over 8 per cent in the first three quarters of the current fiscal year, buoyed by robust domestic economic activity and investments, compared to a GDP growth of 7.2 per cent in 2022-23.

Indian equity markets have experienced significant volatility in recent trading sessions. The BSE benchmark Sensex reached an all-time high of 74,245.17 on March 7 but closed at 72,101.69 on Wednesday.

The markets have observed pronounced fluctuations lately, with notable intra-day swings in share prices.

Since reaching its record peak on March 7, the BSE Sensex has undergone eight trading sessions until Wednesday (March 20), witnessing green closes in four sessions and declines in the other four.

In a separate update on X, Sitharaman's Office disclosed a meeting between the finance minister and Swiggy Chief Executive Officer Rohit Kapoor.

(With Reuters inputs)