RBI Monetary Policy Review today, likely to cut interest rates

At least 25 basis points cut in the policy rate is expected today.

Published: December 7, 2016 9:05 AM IST

By Nithya Nair

RBI Monetary Policy Review today, likely to cut interest rates

Mumbai, Dec 7: The Reserve Bank of India’s Monetary  Policy Committee (MPC) is likely to announce key interest rates today. Amid increase in deposits following demonetisation of Rs 500 and Rs 1,000 notes, RBI is expected to cut interest rates. While, generally the policy is announced on a Tuesday, this is the first time after many years that the RBI policy will be announced mid-week, on a Wednesday.

While this is the fifth bi-monthly policy, it will be the second monetary policy announcement after Governor Urjit Patel took over as the RBI governor on September 4. The policy was earlier slated to be announced on December 6. During the second meeting, the RBI had cut or the short-term lending rate, by 0.25 percentage points to 6.25 per cent. RBI has reduced the policy rate by 1.75 percentage points since January 2015. (ALSO READ: Monetary policy panel meet debuts with 25 basis points rate cut)

“The resolution of the MPC will be placed on the website at 2.30 pm on December 7, 2016,” read the RBI website. Reportedly, as per experts, RBI is likely to cut key policy rate amid increase of deposits an stable inflation levels. The policy repo rate currently stands at 6.25 per cent.

The MPC consists of six members with three each from RBI which includes RBI Governor, Deputy Governor and the Monetary policy nominee from the RBI. The rest are nominated by the Centre. The six members of the committee will vote to decide on the interest rate charges. The RBI Governor holds a casting vote in case of a tie.

Also Read:

For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Latest Business News on India.com.

By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts Cookies Policy.