RBI Monetary Policy LIVE Updates: Shaktikanta Das-Led RBI To Release Statement Shortly
The Reserve Bank of India (RBI) will release the outcome of a three-day meeting of its six-member Monetary Policy Committee shortly. Analysts keenly await RBI Governor Shaktikanta Das’s address to media scheduled at 12:00 noon, for more clarity on the trajectory of interest rates going forward. Most economists expect the Monetary Policy Committee (MPC) to decide to reduce the repo rate – the key interest rate at which the RBI lends funds to commercial banks – in spite of inflationary pressures, amid rising COVID-19 cases in an already-slowing economy. Around two-thirds of economists in a poll by news agency Reuters expect the RBI to reduce the repo rate by 25 basis points to 3.75 per cent today, and once more next quarter to a record low of 3.50 per cent.
Here are latest updates on the RBI’s policy decision:
In a report released last month, the RBI said the coronavirus pandemic is likely to push up the gross non-performing assets – or bad loans – in the country’s banking system to at least 12.5 per cent by March 2021, from 8.5 per cent in March 2020.
Under Governor Shaktikanta Das, the Reserve Bank of India’s recent policies have focused on financial stability and the need to support growth.
The country was placed under one of the strictest lockdowns in the world in late March for over two months to halt the spread of the coronavirus pandemic.
Around two-thirds of economists in a poll by news agency Reuters expect the Reserve Bank of India to reduce the repo rate by 25 basis points to 3.75 per cent today, and once more next quarter to a record low of 3.50 per cent.
The Reserve Bank of India (RBI) has already reduced the repo rate – or the key interest rate at which it lends short-term funds to commercial banks – by a total of 115 basis points since February, on top of the 135 basis points last year, responding to slowing growth.
Most analysts expect a reduction of at least 25 basis points in the key lending rate today.
This is the first scheduled bi-monthly review by the Reserve Bank of India’s six-member Monetary Policy Committee since February. The RBI’s six-member Monetary Policy Committee has already met twice outside its bi-monthly cycle, first in March and then in May.
RBI Policy Statement Due At 11:45 AM
The Reserve Bank of India will release its policy statement at 11:45 am. Analysts are divided over whether the RBI will announce a rate cut to aid the economy despite inflationary pressures. Governor Shaktikanta Das will address the media virtually 15 minutes after the release of policy statement.