RBI Begins Two-Day Policy Review; All Eyes on Rate Cut

INDORE, India - Oct. 3, 2017 - PRLog -- The Monetary Policy Committee (MPC) chaired by RBI governor Urjit Patel started 2-day deliberations on Tuesday with industry and the government anticipating for cut in interest rate.

The 4th bi-monthly monetary policy statement for 2017 -18, to be unveiled on 4 th October, is being closely awaited by all share holders. The industry sector has been demanding for lesser interest rates, however, bankers are on focus that the RBI would keep the existing state of affairs since the inflation has risen.

As per SBI report, the Central Bank is probably to keep status quo on key lending rate in tomorrow's policy review since it is subjected in a riddle of low growth, mild inflation and global fears.

The finance ministry expert view that there is scope for an RBI rate cut at the next policy review as retail inflation continues to be low. All the government analysis is made based on of inflation remaining under 4% in the medium term. The CPI based inflation was 2.36% in July.

The members of the Monetary Policy Committee further consist of Dy. Governor in-charge of MPC Viral A.Acharya, RBI Executive Director Michael D Patra, Director of Delhi School of Economics Pami Dua, Indian Statistical Institute professor Chetan Ghate and I.I.M Ahmedabad professor Ravindra H Dholakia.

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