India Inc. pitches for a rate cut to boost GDP growth.
The Monetary Policy Committee (MPC) started its two day meeting amid experts saying that the central bank is likely to hold key rates.
The MPC committee is being headed by Reserve Bank of India (RBI) Governor Urjit Patel.
The government wants lower interest regime citing low inflation rate. Further, India Inc. pitches for a rate cut to boost GDP growth that fell to 7.1 per cent in 2016-17 from 8 per cent in the previous fiscal.
The RBI is likely to maintain the status quo at its second bi-monthly monetary policy review of the current fiscal, according to financial sector experts.
The central bank can also wait for the roll out of the GST and assess the impact of the new indirect tax regime on inflation before tinkering with the policy rates.
Wednesday, June 7, 2017