RBI August bi-monthly monetary policy: Is No Rate Cut a possibility?
Analysts expect a rate cut in the RBIs August bi-monthly monetary policy, however there were list of several factors that indicated cautious stance in the meet. Policy repo rate for now stands at 6.25%.
Key Highlights:
- RBI kept repo rate unchanged in June policy
- CPI and WPI inflation below 1.5% currently
- Policy repo rate stands at 6.25%
The Reserve Bank of India (RBI) and Monetary Policy Committee (MPC) will announce its August bi-monthly monetary policy on August 2, 2017.
While one could talk about several factors supporting a repo rate cut in the bank's monetary policy, let's consider if there is any probability for a status quo.
At present, the policy repo rate under liquidity adjustment facility (LAF) stands at 6.25%.
The only time when benchmark interest rate was seen below 6% was between January 2009 and August 2010 following the 2008 global financial crisis.
RBI August monetary policy: A 25 basis point rate cut or higher?
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