LIVE RBI policy review: Will we see another surprise?

RBI policy review will take place at 2:30 pm

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#COMPANIES| There is near unanimity that the six-member monetary policy committee of the Reserve Bank of India (RBI) would keep policy rates unchanged, but this being an annual policy, the event promises to discuss many issues that would set the stage for the next one year, including bad-debt resolution and liquidity management.

The repo rate is at 6.25 per cent now, while the RBI has changed its stance to ‘neutral’ from ‘accommodative’, indicating pause in a rate-cutting cycle. Core inflation, which is consumer price index (CPI) minus food and fuel, is sticky at around five per cent, even as the headline CPI has fallen below four per cent, well within the target of RBI. However, economists say uncertain monsoon can flare up prices and, therefore, the central bank would likely wait before deciding the way for rates to go. Meanwhile, the focus would be to continue to nudge banks to cut lending rates.

  • 1:46 PM

    Special deposit facility: Economists expect creation of non-collateralised liquidity parking instrument in this policy

  • 01:40 PM

    Economists say: uncertain monsoon can flare up prices. So RBI would likely wait before deciding the way for rates to go

  • 01:34 PM

    Now that US Federal Reserve has signalled that at least two more rate hikes will ensue in 2017, market participants will look for RBI’s take on the same.

     

01:03 PM

ALSO READ: RBI policy review: Amid focus on cash control, rate to remain unchanged

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