The six-member Monetary Policy Committee, MPC, of the RBI, led by Governor Shaktikanta Das, will announce the credit policy for the current fiscal, a resolution passed by the ongoing three-day MPC meet in Mumbai. The RBI has cut interest rates on every single occasion the MPC met since Shaktikanta Das took over as the Governor in last December.
The Reserve Bank is likely to cut the repo rate for the sixth time in a row in this fiscal’s bi-monthly credit policy statement to support the weak economic growth. In the last bi-monthly monetary policy announced in October, the RBI cut the policy repo rate under the liquidity adjustment facility (LAF) for the fifth time in a row by 25 basis points to 5.15 per cent from 5.40 per cent with immediate effect. The reverse repo rate under the LAF was reduced to 4.90 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 5.40 per cent.