copyrightInflation may lower interest rates on August 2 at the lower level, Reserve Bank
Inflation may lower interest rates on August 2 at the lower level, Reserve Bank
|Inflation may lower interest rates on August 2 at the lower level, Reserve Bank|
New Delhi: The RBI is expected to cut policy rates by 0.25 percent in the third bimonthly monetary review of the current financial year, while retail inflation falls to the lowest level. Experts and bankers have expressed this opinion. Bankers expect that due to the relief on the front of the value, the central bank can make changes in its monetary stance and even cut off the interest rate aggressively. The central bank has kept the repo rate at 6.25 percent for four consecutive terms.
Bank of Maharashtra managing director RP Marathe said, "Inflation has come down and industrial growth has remained weak and there is a scope for deduction of at least quarter-percent interest rates. This will increase, which has remained weak for the past several quarters. " Expressing similar opinion, Indian Bank Managing Director Kishor Kharat said that there is a hope that the central bank will cut at least 0.25 percent.
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Kharat said that the central bank will not compromise the cash reserve ratio: CRR: or the statutory liquidity ratio (SLR) because the liquidity situation in the market is justified. The six-member monetary committee (MPC) headed by Reserve Bank Governor Urjit Patel will announce the results of Monetary Policy on August 2 in the afternoon.
Aditya Puri, managing director of HDFC Bank, said that the case of deduction of interest rates is always there, but there are several members in the committee who will review it. "Inflation has come down, but will it remain at the same level? We all know that due to change in the base effect, this will increase, what is the matter of deduction of interest rates? Most people believe that, but what will happen I do not know. " A report of Kotak Bank of Private Sector states that in the August meeting, MPC can cut interest rates by quarter percentage. Bank of America Merrill Lynch, a global research company, also believes that the Reserve Bank will cut policy rates by 0.25 percent.
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According to a report by State Bank of India, most risks of inflation are downwards. Retail inflation will be below two percent next month. In August, September below three percent, four percent in October-November, and between December and March, it will be in the range of 4 to 4.5 percent.
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