The six-member Monetary Policy Committee (MPC), chaired by Reserve Bank of India (RBI) Governor Urjit Patel, started its three-day policy review discussions on Monday amid expectations of the status quo on the interest rate.
The final verdict given by the MPC will be uploaded on RBI’s website in the afternoon of December 5.
Experts believe that RBI may not alter anything in the benchmark lending rate (repo) despite moderation in economic growth and easing inflation.
In the previous bi-monthly monetary policy, the regulator had left the repo rate changed at 6.5 percent issuing a warning that unstable and rising oil prices and tightening of global financial conditions pose substantial risks to the growth and inflation.
Post the previous policy announcement, the rupee has moved above the mark of 70, against the $.
India’s economic growth slipped to 7.1 percent in the September quarter after inflating to an over two-year high in the first three months of this fiscal. This is accredited to high consumption demand and weakness in the farm sector.