RBI will announce its third bi-monthly policy review in a short while from now. The six-member Monetary Policy Committee, led by RBI Governor Dr.Urjit Patel, began a two-day meeting in Mumbai yesterday ahead of the announcement.
AIR correspondent reports that the RBI Monetary Policy Committee meeting’s outcomes are keenly awaited by all stakeholders including industry and stock markets.
This time around, bankers expect RBI to change its monetary stance and cut benchmark lending rate by at least 0.25 per cent. Some also expect that the central bank may go for an even more aggressive rate cut as the retail inflation touched a historic low of 1.54 per cent in June.
Both Sensex and Nifty developed cold feet ahead of the RBI policy announcement by slipping into the negative zone after a strong start. The Sensex hit an all-time high at 32,686 and Nifty hit a life high of 10,138 early this morning.
Traders said that the widening of bets by investors and funds on expectations that the Reserve Bank might lower key interest rates gave buying more push. Along with Share market, rupee also edged down by 5 paise to 64.12 against the dollar
