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Monetary policy review: RBI might not cut rates today

Analysts largely expect RBI to maintain the status quo, but add there could be a rate cut later in the financial year

Anup Roy 

RBI monetary policy review

The six-member Committee (MPC), headed by Governor Urjit Patel, will announce its interest rate decision today. 

Analysts largely expect the central bank to maintain the status quo, but add there could be a later in the financial year. There are also some who see the rate-cut cycle, which started on January 15, 2015, by bringing down the repo rate to 7.75 per cent from 8 per cent, to have reached its end. 

ALSO READ: Opinion: The interest rate question
 
Currently, the repo rate stands at 6 per cent. The following charts illustrate why the RBI won’t be in a hurry to cut rates, even as growth is slowing. Inflation, which the central bank targets to keep under check, surprised analysts with its sharp rise in the past two readings. 


RBI decides its policy stance

graph


 


First Published: Wed, October 04 2017. 10:31 IST
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