The MPC meeting began on Monday. Speculations are rife about another rate cut with inflation well under RBI’s comfort zone, slowing automobile sales, muted growth in infrastructure industries, concerns over spread of monsoon and slump in stock market.
With inflation under control, experts are expecting another 25 basis points rate cut by the RBI for a fourth time in a row to boost economic activities. The Monetary Policy Committee (MPC), headed by RBI Governor Shaktikanta Das, is deliberating on the macro-economic situation, and is scheduled to announce its third bi-monthly policy of the ongoing fiscal on Wednesday.
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The MPC meeting began on Monday. Speculations are rife about another rate cut with inflation well under RBI’s comfort zone, slowing automobile sales, muted growth in infrastructure industries, concerns over spread of monsoon and slump in stock market.
Finance Minister Nirmala Sitharaman held reviewed credit bursal by banks at a meeting on Monday and asked banks to pass on 75 basis points (bps) rate cut by RBI since February to borrowers. Talking to reporters after the meeting, SBI chairman Rajnish Kumar had said he was hopeful of another rate cut by MPC.
Source: Financial Express
