Reserve Bank of India (RBI) Governor Shaktikanta Das will hold discussions on March 26 with representatives of trade bodies and credit rating agencies on interest rate and for better economic activities, said sources. The meeting, which comes ahead of the next financial year’s first MPC meet scheduled for April 4, is aimed at broadening the consultation process, they added.
The bi-monthly policy, to be finalised by the six-member Monetary Policy Committee (MPC), assumes significance as it would be announced just a week before the commencement of the seven phase general elections beginning April 11. “The pre-policy consultation meeting” with the governor will take place in Mumbai on March 26, the sources said.
Soon after taking charge as the 25th governor of the RBI in December 2018, he had promised the stakeholders and the government that he would take them through key policy issues to maintain growth while keeping inflation under check. While the RBI cut the interest rate in its February monetary policy after a gap of 18 months, industry has started clamouring for another rate cut as retail inflation is below the RBI’s benchmark of 4 per cent and need for boosting growth is pressing.
There have also been complaints that banks do not pass on the entire benefit of policy rate cut to borrowers. Last month, the governor had held meeting with top officials of public and private sector banks to discuss rate transmission and persuade them to award lower interest rates to consumers.
