RBI monetary policy review: Urjit Patel led MPC expected to hold key interest rate
RBI monetary policy review: Although hopeful of a cut in the Reserve Bank of India`s repo, or short-term lending rate for commercial banks, India Inc expects the regulator to also maintain its `neutral` stance on monetary policy that allows the RBI room for moving either way on rates. In a letter to RBI Governor Urjit Patel, industry body Assocham said the key risks to the retail inflation include higher Minimum Support Prices (MSP) for agricultural items allowed in Budget 2018-19, populist spending in the run-up to the 2019 general elections and strengthening of global crude oil prices
According to official data, retail inflation based on the Consumer Price Index (CPI) fell to 4.44 per cent in February, from 5.07 per cent in January, but remained outside the RBI medium-term target of 4 per cent. Image source: Reuters