RBI's June MPC review: Terminal rate and policy tone to be in view

The six member monetary policy of the RBI has reduced the policy repo rate by 25 bps each in the two previous policy review meetings, in February and April

With the Reserve Bank of India (RBI) set to announce on Friday the review of the June meeting of its monetary policy committee (MPC), what will be watched are the tone of the policy and if there is any indication how much the central bank will reduce interest rates further, given the current growth-inflation dynamics.

 

The six-member panel reduced the policy repo rate by 25 basis points each in the two previous policy review meetings, in February and April.

 

It is expected that the panel will cut the rate by another 25 basis points.

 

“The terminal rate is expected to