Reserve Bank of India will announce its sixth and the final bi-monthly monetary policy for 2017-18 today.
The six-member Monetary Policy Committee (MPC) headed by RBI Governor Urijit Patel began its meeting in Mumbai yesterday. All eyes will on RBI’s inflation estimates. Central Bank may toughen its warning against inflation.
The policy statement is likely to guide the direction of interest rates, even if there is no rate action immediately.
Though RBI has held the rates steady since a 25 basis point cut in August, prospects of rate hike have increased as annual inflation accelerated to 5.21 percent in December 2017. RBI is also worried about higher global crude prices.
