Twitter
Advertisement

Five must-reads before Urjit Patel takes stage to announce RBI monetary policy today

This will be the first monetary policy outing since the Budget 2017 announcement, second since demonetization, and the final policy announcement of the current fiscal year.

Latest News
article-main
RBI Governor Urjit Patel
FacebookTwitterWhatsappLinkedin

The central bank governor is scheduled to take stage at the Reserve Bank of India (RBI) headquarters in Mumbai at 230 pm on Wednesday to announce the last monetary policy of the fiscal. This will be the second monetary policy after the government decided to demonetize high-denomination notes and the first since the Budget 2017. 

Here are five reports by DNA you need to read before Urjit Patel announces the monetary policy today:

1) Will RBI cut rates or hold them on February 8?

Experts from the industry, economists and some bankers share their views about whether the Patel-led monetary policy committee - which now decides on key interest rates of the central bank - will cut rates or maintain status quo like the last time.

There are various factors in favour of a rate cut, they say, including the need for more liquidity in the markets, subdued inflation, fiscal consolidation on path, a need to push up domestic growth. READ MORE

2) If RBI cuts rates will this be the last one this year?

Nomura says the RBI is likely to cut rates by 0.25% - in line with the views of the other experts - however it says that this may be the last rate cut from the central bank for the rest of the year. Want to know why? READ MORE

3) Good news for the people? Bank lending rates to stay soft 

Whether RBI goes in for a rate cut on Wednesday or not, bank lending rates will remain soft. In the aftermath of demonetization, the banks have a bounty of deposits and credit offtake is low. READ MORE

4) IDBI Bank doesn't wait for RBI cue, cuts home loan rate

IDBI Bank is just one more in the fray to lead a rate cut before the RBI announces its monetary policy on Wednesday. Usually banks await to see what the central bank does for the repo rate - i.e. the rate at which the RBI lends to banks - before deciding on its lending rates. READ MORE

5) Sensex closes 104 points down ahead of monetary policy

The benchmark BSE Sensex closed 104 points below the red line ahead of the monetary policy announcement. This is after the markets largely rallied for four sessions ahead of the crucial policy review.

"The upmove in the last four sessions mostly was due to market-friendly budgetary proposals and rate-cut expectations from RBI, in its policy meet on February 7," our correspondent wrote. READ MORE

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement