RBI Governor Shaktikanta Das has already promised more policy measures to support growth, if needed

The Reserve Bank of India (RBI) will release the outcome of a three-day meeting of its six-member Monetary Policy Committee shortly. Analysts keenly await RBI Governor Shaktikanta Das’s address to media scheduled at 12:00 noon, for more clarity on the trajectory of interest rates going forward. Most economists expect the Monetary Policy Committee (MPC) to decide to reduce the repo rate – the key interest rate at which the RBI lends funds to commercial banks – in spite of inflationary pressures, amid rising COVID-19 cases in an already-slowing economy. Around two-thirds of economists in a poll by news agency Reuters expect the RBI to reduce the repo rate by 25 basis points to 3.75 per cent today, and once more next quarter to a record low of 3.50 per cent.

Here are latest updates on the RBI’s policy decision:

RBI Has Already Cut Repo Rate By 1.15 Percentage Point Since February

The Reserve Bank of India (RBI) has already reduced the repo rate – or the key interest rate at which it lends short-term funds to commercial banks – by a total of 115 basis points since February, on top of the 135 basis points last year, responding to slowing growth.

Most analysts expect a reduction of at least 25 basis points  in the key lending rate today.

RBI Governor Shaktikanta Das To Address Media At 12:00 Noon
This is the first scheduled bi-monthly review by the Reserve Bank of India’s six-member Monetary Policy Committee since February.   The RBI’s six-member Monetary Policy Committee has already met twice outside its bi-monthly cycle, first in March and then in May.

RBI Policy Statement Due At 11:45 AM
The Reserve Bank of India will release its policy statement at 11:45 am. Analysts are divided over whether the RBI will announce a rate cut to aid the economy despite inflationary pressures. Governor Shaktikanta Das will address the media virtually 15 minutes after the release of policy statement.