RBI’s monetary review today, unlikely to cut interest rates

RBI's monetary review today, unlikely to cut interest rates
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The meeting of the six-member monetary policy committee is taking place at a time when the government has stressed that the fiscal deficit and revenue deficit for 2017-18 will be less than the revised estimate of the general budget.

New Delhi: The two-day meeting of the Monetary Policy Committee (MPC) headed by Governor Urjit Patel of the Reserve Bank of India will end today. MPC will announce the results of the first bi-monthly monetary review meeting of the current financial year today. MPC’s proposal will be put on the Reserve Bank’s website at 2.30 pm after the meeting is over.

 

In view of the global price rise in crude oil prices, the likelihood of a cut in interest rates by the MPC is quite low. In the last three policy meetings, the Reserve Bank has maintained the status quo on the interest rates front. In August last year, the repo rate was reduced by 0.25 percent to 6 percent, which is its low level of six years.

 

The meeting of the six-member monetary policy committee is taking place at a time when the government has stressed that the fiscal deficit and revenue deficit for 2017-18 will be less than the revised estimate of the general budget. The shareholder’s view is at the MPC meeting. There is pressure on the central bank to cut interest rates to boost retail inflation and boost growth.

 

Skymet has estimated the monsoon to be normal. With this, agricultural production is expected to improve, which will reduce the pressure on prices. Other members of the MPC headed by Reserve Bank Governor Urjit Patel include deputy governor Viral Acharya, Executive Director Debavrat Patra. External members of the committee include Chetan Ghate, Pami Dua, and Ravinder Dholakia.