The Reserve Bank of India (RBI) will announce its decision on the key interest rates — repo rate and reverse repo rate at noon today. The Monetary Policy Committee (MPC) of the central bank kicked off its three-day monetary policy meeting, its sixth and the final one in this financial year 2019-20, on Tuesday, February 4.
The RBI had said that it will place the resolution of the MPC on its website before noon on February 6.
During its previous MPC meeting in December, the central bank had kept its repo rate unchanged at 5.15 per cent after five consecutive cuts. It had also continued with its accommodative stance for supporting the Indian economy.
Apart from this, the RBI had also sharply revised its GDP growth forecast for 2019-20 to 5 per cent from 6.1 per cent it had projected in its October policy meeting.
The bi-monthly monetary policy’s outlook on inflation and economy is seen to be vital, as the market experts are already factoring in that central bank will most likely maintain a status quo on interest rates.
According to a group of economists polled by news agency Reuters, the RBI is likely to keep its monetary policy accommodative without cutting interest rates, as inflation is above target and the economy has shown possible signs of recovery from its worst slowdown in more than a decade.
The country’s retail inflation (CPI) rose to a five-year high of 7.35 per cent in December from 5.54 per cent a month ago, limiting the scope for a rate cut to boost growth.
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