The Reserve Bank will slash rates for the third time in a row, based on the economic growth which dropped to a five-year low in the final quarter of 2018-19, opined experts.<\/p>\n
The RBI’s Monetary Policy Committee (MPC) is ready to announce its bi-monthly policy on Thursday amidst Narendra Modi-led government starting its second term. The central bank had cut the short-term lending rate (repo rate) by 25 basis points each in its last two policy reviews.<\/p>\n
The\u00a0MPC\u00a0headed by RBI Governor Shaktikanta Das will meet for three days starting June 4 to firm up the second bi-monthly monetary policy of the fiscal.<\/p>\n
India’s largest bank SBI in a recent research report had said that the RBI needs to go in for a larger rate cut, more than 25 basis points, in the next monetary policy review in June to reverse the current slowdown in the economy.<\/p>\n
Based on expectations from the MPC, CII Director said the RBI needs to work on lowering interest rates in order to provide a stimulus to the economy.<\/p>\n
It is needed to address the slowdown in production and sales across consumer goods categories including segments such as passenger cars, two-wheelers as well as non-durables, he said, adding that if the inflation is still far below the RBI’s target of 4 per cent, there will be ample room for a reduction in the policy rate.<\/p>\n
Without making any judgement on a rate cut by the RBI, the Finance Secretary said there has been a reduction in the policy rate in the last two policies announced since February.<\/p>\n
It is up to the Monetary Policy Committee to take a view on policy rate taking into consideration low inflation and moderation in economic growth.<\/p>\n
Inflation is much lower than the target, he said, adding that core inflation is now on a decline.<\/p>\n
India’s GDP growth saw a five-year slow down at 5.8 percent in the fourth quarter of 2018-19 mainly due to the poor performance of agriculture and manufacturing sectors.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Reserve Bank will slash rates for the third time in a row, based on the economic growth which dropped to a five-year low in the final quarter of 2018-19, opined experts. The RBI’s Monetary Policy Committee (MPC) is ready to announce its bi-monthly policy on Thursday amidst Narendra Modi-led government starting its second term. […]<\/p>\n","protected":false},"author":1,"featured_media":3267,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5358","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy-and-politics"],"aioseo_notices":[],"yoast_head":"\n