The 6-member Monetary Policy Committee (MPC) headed by RBI Governor Urjit Patel on Tuesday started two-day deliberations amid expectations of at least 0.25 per cent cut in the key lending rate as inflation has cooled to record low levels.
The meeting’s outcome tomorrow is being keenly awaited by all stakeholders including industry and stock markets.
Encouraged by significant price improvement, bankers expect Reserve Bank of India 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 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.