RBI to announce monetary policy today, 25-basis-point rate cut expected
RBI's MPC meet begins;
decision on rates on August 2
LATEST
NEWS : The six-member
Monetary Policy Committee (MPC) headed by Reserve
Bank of India (RBI) Governor Urjit Patel on Tuesday started two-day
deliberations for its monetary policy review.
The RBI will announce the bi-monthly monetary policy on
Wednesday. Experts expect a reduction of 25 basis points in key lending rate
this time, as inflation has cooled to record low levels.
The meeting's outcome on Wednesday is being keenly awaited
by all stakeholders, including industry and stock markets.
Encouraged by significant price improvement, bankers expect
RBI to change its monetary stance and cut benchmark lending rate by at least
0.25 per cent.
Some expect that the central bank may go for an even more
aggressive rate cut as the retail inflation touched a historic low of 1.54 per
cent in June.
The panel, in its previous bi-monthly review in June, had
retained the repo rate at 6.25 per cent for the fourth straight time citing
risk to inflation.
"The MPC will meet on August 1 and 2, 2017 for the
Third Bi-monthly Monetary Policy Statement for 2017-18. The resolution of the
MPC will be placed on the website at 2.30 pm on August 2, 2017," the
central bank had said last month.
Commenting on the retail inflation data, Chief Economic
Advisor Arvind Subramanian had said the "paradigm shift" in the
inflationary process has been missed by all, who have made "systematic
inflation forecast error", apparently referring to the RBI.
In the last MPC, Patel had argued for avoiding
"premature policy action" and waiting for more inflation data.
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