The Reserve Bank of India will announce the fourth bi-monthly policy review statement this afternoon. The Monetary Policy Committee led by RBI governor Urjit Patel started two-day deliberations with industry in Mumbai yesterday. The bi-monthly monetary policy statement is being keenly awaited by all stakeholders — especially the industry which has been demanding for lower interest rates.
Several experts and industry bodies have made a strong case for lowering of the key interest rate in view of subdued inflation and the urgency to propel economic growth which appears to be reeling under the impact of demonetisation and GST implementation.
Benchmark indices are trading higher ahead of outcome from Reserve Bank of India’s policy meet. The Sensex was up 139.33 points at 31636.71, and the Nifty was up 46.05 points at 9905.55. In its last policy review in August, the RBI decreased the repo rate by 0.25 percent to 6 percent, citing reduction in inflation risks.