(News18)
The RBI may cut the key policy rate again on Friday, the fifth in row, to complement the government’s measures like reducing corporate tax and promoting credit off take to spur economic activity during the festive season amid range-bound inflation. The RBI Governor Shaktikanta Das headed Monetary Policy Committee (MPC) will announce the fourth bi-monthly monetary policy for 2019-20 on Friday, October 4, after its three-day meeting.
The central bank has already slashed the repo rate (short-term borrowing rate) four times aggregating to 1.10 percentage points since January. At its previous meeting in August, the MPC had reduced the benchmark lending rate by an unusual 35 basis points to 5.40 per cent. The upcoming MPC meeting comes in the backdrop of the RBI’s mandate to banks to link their loan products to an external benchmark, like repo rate, for faster transmission of reduction in policy rates to borrowers from October 1.
