RBI's MPC meet starts on Monday amid expectations of a policy rate cut

The meeting of the six-member monetary policy committee (MPC) of the Reserve Bank of India (RBI) will start on Monday — the first in the current financial year — amid expectations of another 25 basis points (bps) cut in the policy repo rate though there are outside chances of a higher rate reduction.

 

Also, focus will be on liquidity-related measures to boost transmission of policy rates to bank lending and deposit rates.

 

The central bank had a series of meetings with bankers in the run up to the policy, for feedback on the liquidity framework.

 

A revised liquidity framework is