The Reserve Bank of India may keep the repo rate unchanged for the ninth consecutive time. The meeting of the Central Bank's monetary policy committee (MPC) will begin on August 6 and its decisions will be announced on August 8. Analysts say that the RBI's problem has increased due to the high level of food inflation in recent months. In such a situation, there is no scope for reduction in rates till October.

According to analysts, the pace of economic activity will continue to give RBI the scope to maintain rates at the current level. According to the Bank of Baroda report, the repo rate will be reduced only when RBI is confident that inflationary pressure is reducing, or can reduce further. According to the report, food inflation remains high continuously. Retail inflation reached a four-month high of 5.1% in June. It was at 4.8% in May. With this, the inflation rate has remained above RBI's target of four percent for the 57th consecutive month.

Most of the increase in inflation in the last few months has been due to food inflation. The report says that the prices of vegetables and pulses have increased by more than 10% in the last 8 months and 13 months. In such a situation, the hope of a reduction in core inflation is being dashed. Apart from these, tomatoes, potatoes and onions are also continuously putting pressure on inflation. Their prices had increased by more than 50% in July. Due to which this little hope of getting relief from inflation in the coming time.

The repo rate may decrease in December
The report says that there is no hope of any change in the repo rate or RBI's stance before December. RBI will keep an eye on the upcoming data. If something positive is seen in it, then the repo rate may be reduced. Still, there is no possibility of this before December.