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  • Thursday, December, 2019| Today's Market | Current Time: 03:58:04
  • RBI to announce second bi-monthly monetary policy tomorrow

    Published on June 5, 2019

    The six-member Monetary Policy Committee of the Reserve Bank of India will announce the second bi-monthly monetary policy statement for 2019-20 tomorrow.

    The three-day meeting of the committee began in Mumbai on Tuesday amid expectations of a third straight rate cut of 25 basis points. The key lending rate or the repo rate currently stands at 6 percent.

    This will be RBI Governor Shaktikanta Das’ third policy review after taking charge. In the last two policies, the committee had reduced repo rate by 25 basis points each in February and April 2019. Under the chairmanship of Shaktikanta Das, the committee had also changed its stance from calibrated tightening to neutral in February and maintained the same in April policy.

    Analysts believe that RBI has enough room to cut rates further as inflation has remained below the RBI’s medium-term goal of 4 percent for the ninth month in a row. Consumer Price Index, CPI inflation for April 2019 stood at 2.92 percent. The rate cut is also likely to revive the economy that is going through a slowdown.