The Monetary Policy Committee interacted with the Reserve bank of India Governor Urjit Patel to announce the rate cut today. A sharp change in retail increases over the past few months has brightened hopes for further monetary policy reduction from the central bank, which changed its position to make neutral from making a help during starting of the year 40 of 56 economists polled by Reuters predict the RBI cutting is repo rate by a quarter percentage to 6 percent on Wednesday .two of the responders told that central bank would decrease the rate by 50 basis points. And RBI wants to release the final announcement by today at 2:30 pm.
Earlier, the Chief Economic Advisor Arvind Subramanian had said that, “there had been a ‘standard shift’ in inflation trail which has been “missed by all”. This was seen as an apparent reference to the decision of the monetary policy committee, which has kept the key policy rate unchanged so far this year citing pricing pressures. Previously, the RBI cut its key interest rate in October 2016. RBI would be on guarded that, “besides the prospect of higher inflation, there would be on protector as global central banks prepare to shift toward tough policy”. And domestic GDP growth is also expected to pick up after it fell to a two-year low of 6.1% in the January-March quarter.
