Possibility of an RBI rate cut tomorrow, say Chanda Kochar and Keki Mistry
A revision in rate cut is expected by RBI Governor Urijit Patel-led Monetary Policy Committee (MPC).
Chanda Kochar, Managing Director and CEO of ICICI Bank said told Zee Business, "If we look at the inflation rate, monetary policy rate and deposit rate, there is possibility of repo rate to go down in the upcoming policy."
Similarly, Keki Mistry Vice Chairman and CEO of HDFC said, "One more rate cut is possible, we cannot say that it will happen with the same degree of certainty but there is still a possibility of 0.25% rate cut as inflation is under control. I do not see any reason that inflation may go up further, it is likely to be under check, hence will give RBI the ability or freedom to cut rates."
RBI is set to announce its fifth bi-monthly monetary policy on December 07, 2016.
Presently, the policy repo rate under the liquidity adjustment facility (LAF) is at 6.25%, while reverse repo rate at 5.75% and the bank rate to 6.75%.
During the month of October 2016, India's consumer price index (CPI) inflation rate eased at 4.2%, which supported RBI in providing a 25 basis point rate cut in the previous policy.