RBI likely to lower interest rates on Wednesday
New Delhi: The Reserve Bank pf India (RBI) is likely to cut the benchmark lending rate by at least 0.25 per cent in its third bi-monthly monetary policy review on Wednesday, say experts and bankers.
Encouraged by significant price improvement, bankers expect RBI, which has kept rates on hold at 6.25 per cent for the fourth straight time citing risk to inflation, to change its monetary stance and may even go for an aggressive rate cut.
The six-member Monetary Policy Committee (MPC) of the RBI headed by RBI Governor Urjit Patel will announce the outcome of the meeting on August 2 afternoon, as per sources.
The retail inflation, which the RBI mainly factors in while deciding interest rate, has declined to historical low of 1.54 per cent in June. The wholesale price inflation for the month too has dropped to eight month low.