World Economy

RBI Likely to Cut Rate

RBI Likely to Cut RateRBI Likely to Cut Rate

With retail inflation receding to record low levels, the Reserve Bank of India is likely to cut the benchmark lending rate by at least 0.25% in its third bi-monthly monetary policy review on Wednesday, say experts and bankers, PTI reported. Encouraged by significant price improvement, bankers expect RBI, which has kept rates on hold at 6.25% for the fourth straight time citing risk to inflation, to change its monetary stance and may even go for an aggressive rate cut. “The expectation is of rate cut of a minimum 25 basis points as inflation has eased and also as industrial growth continues to remain weak,” Bank of Maharashtra Managing Director R. P. Marathe said.


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