Mumbai: The Reserve Bank of India (RBI) will announce its bi-monthly policy rates today afternoon. The Monetary Policy Committee (MPC) of the RBI has started its deliberations from 3rd of this month and the resolution of the MPC will be uploaded at 2.30 pm in the RBI website.
The timing of the monetary policy review is crucial, in the backdrop of the tussle between the Government and RBI and the question of RBI’s autonomy. Meanwhile, improving Rupee and drop in Crude Oil prices has provided the scope for a rate cut, but RBI likely to retain the status quo.
According to experts, the committee will likely keep the repo rate unchanged and refrain from tinkering with the cash reserve ratio (CRR). In its last bi-monthly monetary policy review announced on October 5th, the Central Bank had kept Repo Rates Unchanged at 6.5%.
Repo rate is the rate at which banks borrow short-term funds from the Reserve Bank of India (RBI), while CRR is the share of a bank’s total deposits that it has to keep in a current account with the RBI.