RBI to announce MPC meeting outcome on August 2
DSIJ Intelligence / 01 Aug 2017
The outcome of the Monetary Policy Committee (MPC) meeting will be announced by the RBI on August 2. Experts are largely anticipating an interest rate cut due to falling consumer price inflation.
The outcome of the Monetary Policy Committee (MPC) meeting will be announced by the RBI on August 2. Experts are largely anticipating an interest rate cut due to falling consumer price inflation.
Post demonetisation, the cost of funds for the bankers continues to fall and a further easing of policy rate will only help the sector. The banking sector is directly impacted by the RBI’s policy decision.
Monetary Policy Committee will also give an outlook on GDP and inflation during the policy meeting. RBI is likely to guide the public sector banks on bad loans to improve their balance sheets.
If MPC cuts interest rates on Wednesday, then it could boost the market sentiment and drive it higher, as a rate cut is usually viewed as a step to boost economic growth. A status quo, though, could have a reverse effect.