MPC meet begins; RBI likely to maintain status quo

The fourth bi-monthly monetary policy statement for 2017-18 is being keenly awaited by all stakeholders.

The Monetary Policy Committee started its two-day deliberations on Tuesday amid the industry and the government expecting interest rate cut to spur growth, as per a PTI report.

Notably, the fourth bi-monthly monetary policy statement for 2017-18 is being keenly awaited by all stakeholders. However, bankers believe that the RBI is likely to maintain status quo as inflation has risen.

A SBI report said that the RBI would maintain status quo on key lending rate as it is “stuck in a conundrum” of low growth, mild inflation and global uncertainties.

“We expect the RBI to stay on hold at the upcoming meeting as rising incoming inflation and projections of further acceleration in inflation ahead will mean that there would be limited space for further easing,” said Morgan Stanley’s research note.

The fourth bi-monthly monetary policy statement for 2017-18 will be released today.

Source: PTI


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