Reserve Bank of India will today announce the fourth bi-monthly policy review statement. The Monetary Policy Committee headed by RBI governor Urjit Patel started two-day deliberations with industry in Mumbai yesterday.
The bi-monthly monetary policy statement is being keenly awaited by all stakeholders, especially the industry which has been demanding lower interest rates. Several experts and industry bodies have made a strong case for lowering of the key interest rate in view of subdued inflation and the urgency to propel economic growth which appears to be reeling under the impact of demonetisation and GST implementation.
The government also expects a helping hand from the RBI in the form of interest rate cut in the monetary policy review to boost growth which fell to a three-year low of 5.7 percent in the June quarter.
In its last policy review in August, the RBI reduced the repo rate by 0.25 per cent to 6 per cent, citing reduction in inflation risks.