The Reserve Bank of India (RBI) will announce key policy rates today after the conclusion of the three-day meeting of Monetary Policy Committee (MPC). The expectation is the regulator will hold the repo rate at 6 per cent, and could change its stance from neutral to accommodative.Also Read - Indian Foreign Reserves Fall USD 2.71 Billion

The policy will be closely watched as the economy has started to revive after the twin-blow of demonetisation and Goods and Services Tax (GST). Gross Domestic Product (GDP) grew by 7.7 per cent during January-March 2018 compared with 5.6 per cent growth in Q1, 6.3 per cent in Q2 and 7 per cent in Q 3 of 2017-18. This is the highest growth recorded in the last three quarters. For the full Financial Year 2017-18, gross domestic product (GPD) grew by 6.7 per cent. Any increase in policy rates can slow down the economic growth rates with an increase in the cost of lending. Also Read - ATM Cash Withdrawals to Cost More From THIS Date. Check New Charges, Other Details Here

While the economy is growing, retail inflation has also increased on the back of rising global crude oil prices. Retail inflation increased to 4.58 per cent in April, which may push the regulator to increase repo rate. Repo rate is currently at 6 per cent. The Wholesale Price Index (WPI) based inflation, too, rose to 3.18 per cent in April. Also Read - Private Cryptocurrencies in India May Not be Banned, Will Be Regulated: Report

Corporate governance can also be discussed given the ongoing turmoil in ICICI Bank. Depreciating rupee along with bad debts have also been a cause of concern for the banking regulator. The rupee has already depreciated by 3 per cent in the last couple of months, crossing 68 per dollar. With bad debts on the rise, the monetary policy commentary will be closely watched.

Live Updates

  • 3:24 PM IST

    Bank deposit and lending rates likely to increase with a hike in repo rate

  • 3:11 PM IST

    On Bank NPAs, RBI says situation should get better

  • 3:08 PM IST

    It was the unanimous decision of all MPC members to increase the repo rate

  • 3:03 PM IST

    Liquidity remained in neutral zone in March-April

  • 3:02 PM IST
    Retail payments system has concentration risk, the policy paper will be brought out which will invite private players.
  • 2:57 PM IST

    RBI has said will remain cautious and vigilant

  • 2:52 PM IST

    GDP growth for 2018-19 is retained at 7.4 per cent as in the April policy. GDP growth is projected in the range of 7.5-7.6 per cent in H1 and 7.3-7.4 per cent in H2

  • 2:49 PM IST

    Projected CPI inflation for 2018-19 is revised to 4.8-4.9 per cent in H1 and 4.7 per cent in H2, including the HRA impact for central government employees

  • 2:48 PM IST

    RBI expects investment activity to remain robust

  • 2:47 PM IST

    Gross domestic product (GDP) growth for 2017-18 has been estimated at 6.7 per cent, up by 0.1 percentage point from the second advance estimates released on February 28. This increase in growth has been underpinned by a significant upward revision in private final consumption expenditure (PFCE) due especially to improved rural demand on the back of a bumper harvest and the government’s thrust on rural housing and infrastructure.