New Delhi: The Reserve Bank of India (RBI) may cut interest rates once again to save the economy that is battling corona. According to experts, in the next monetary policy review, the RBI chairman may cut the policy rate repo by 0.25 percent. It is noteworthy that the three-day meeting of the Monetary Policy Committee (MPC), headed by the Governor of RBI, is to begin from August 4 and an announcement will be made on August 6.
The Reserve Bank is constantly taking steps to limit the impact of the economy and the lockdown caused by the outbreak of the Corona epidemic. Earlier in March and May also MPC meetings have been held, in which the policy repo rates were cut by a total of 1.15 percent. Due to the recent rise in prices of food items, especially meat, fish, cereals and pulses, retail inflation based on the Consumer Price Index has reached 6.09 in June.
The Reserve Bank has also said earlier that the comfortable level of inflation is only 4 percent (it can be 2 percent plus or minus). Meaning inflation is now out of the convenient scope of RBI. According to the PTI report, Principal Economist of ICRA, Aditi Nair said, "We are expecting a 0.25 percent reduction in the repo rate and 0.35 percent in the reverse repo rate."
Also Read:
Vastu Gyan: Follow these measure to get rid of financial crisis
Subsidized LPG cylinder becomes expensive by Rs 100 in a year, know how
Aviation ministry makes big announcement for domestic air travelers
How to attract investment in India? IMF suggests important measures