(PTI)
RBI’s Monetary Policy Committee (MPC) today began 3-day meeting amid speculations that key interest rate may be hiked for the first time after four-and-half years on account of firming prices of crude oil and high inflation. The six-member MPC, headed by Reserve Bank of India (RBI) Governor Urjit Patel, is meeting for three days for the first time instead of the usual two days due to some administrative exigencies. The resolution of the second bi-monthly monetary policy meeting in the current financial year, 2018-19, will be made public on Wednesday afternoon.
It was in January 2014 that RBI had last raised the short-term lending rate (repo) to 8 per cent; since then it has either reduced it or maintained status quo. The current repo rate stands at 6 per cent. The 7-quarter high GDP growth rate of 7.7 per cent in the January-March quarter of 2017-18 and forecast of a normal monsoon have reduced the clamour for a cut in the benchmark lending rate (repo).
