The RBI on Tuesday began its rate-setting huddle amid widespread expectations that the Monetary Policy Committee (MPC) headed by Governor Shaktikanta Das would slash benchmark interest rate to revive the sagging economy.
The Governor has already hinted that the benign inflation provides room for further monetary policy easing while space for fiscal space is limited.
The Government has already announced a series of measures including steepest cut in corporate tax, rollback of enhanced surcharge on Foreign Portfolio Investors, among others to jump-start growth which hit a six-year low of 5 per cent during the first quarter of the current fiscal.
The six-member MPC is scheduled to announce the fourth bi-monthly monetary policy for 2019-20 on Friday, October 4, after a three-day meeting.
There is no meeting of the panel due to national holiday on October 2, which marks birth anniversary of Mahatma Gandhi.