The results of the December monetary review meeting of the Reserve Bank of India (RBI) are going to come today. This meeting is going on from 2 December. Experts say that RBI can keep policy rates for the third time in a row. Due to the rise in the rate of retail inflation, the Monetary Policy Committee (MPC) will probably not change interest rates once again. It remains to be seen what the Monetary Policy Committee decides in this regard.
Retail inflation currently remains above the Reserve Bank’s satisfactory level. Experts also believe that the growth rate of gross domestic product (GDP) in the second quarter of the current fiscal year ended in September has been negative, due to which the central bank may keep its monetary stance soft. Beyond this, interest rates can be cut if needed.
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Repo rate has decreased by 1.15% since February
In the last meeting of MPC held in October, policy rates were not changed due to increased retail inflation. The Reserve Bank estimates that the country’s economy will decline by 9.5 per cent in the current financial year. Since February this year, the central bank has cut the repo rate by 1.15 percent.
Source: www.financialexpress.com