Mumbai: The Reserve Bank of India’s (RBI) Monetary Policy Committee meeting will commence on Tuesday for the first bi-monthly statement of 2019-20. The meeting will go on for two days.
Notably, the central bank will unveil the monetary decision for this fiscal on Thursday i.e. April 4. “The resolution of the MPC will be placed on the website at 11.45 AM on April 4, 2019,” the central bank said in a press release on Monday.
Industry and experts are expecting that the banking sector regulator may cut the key lending rate — at which it lends to commercial banks — by 0.25 per cent so as to boost the economic activities as fears loom large about global economic slowdown impacting India’s growth prospects.
The RBI had cut the repo rate by 25 basis points (bps) or 0.25 per cent in February after a gap of one-and-a-half years.
A back-to-back cut in interest rate would provide relief to borrowers in the election season, experts say.
Ratings firm ICRA said, “We expect a 25 bps rate cut in the upcoming meeting of monetary policy committee…”
“With the subdued growth outlook and moderate inflation. The RBI does not seem to have any major reason not to cut the policy rate again during its next meeting. I think that the relevant question is whether the bank would cut the rate by more than 25 bps,” said Sujan Hajra, Chief Economist and Executive Director, Anand Rathi Shares & Stock Brokers.
(With agency inputs)