New Delhi: Reserve Bank of India (RBI) does not see any cut in interest rates. The RBI will announce the first bilateral monetary policy review of the current financial year on the 5th of this month. This is the first monetary review to introduce this year’s budget. Industry sources have demanded further cut in key interest rates to boost investments and economic growth in the wake of inflation. However, analysts said the RBI may continue to keep interest rates on the back of rising inflation rates, rising crude oil prices in the international market and trade war fears and rising US Federal Reserve’s interest rates. At present, the RBI repo rate is 6 percent and the reverse repo rate is 5.75 percent. The Bank’s rate is 6.25%.
The six-member Monetary Policy Committee (MPC), headed by RBI governor Urjit Patel as part of the credit policy review, will meet on 4th and 5th of this month. By voting, members will give feedback on interest rates. Decide on the basis of majority members. The RBI will announce other decisions on interest rates and monetary policy in the afternoon. Deputy Chief Minister Vilas Acharya and Executive Director Michael Debwata are members of the Monetary Policy Committee for the RBI along with Urjit Patel. Members appointed by the government include Chetan Ghatte, Pumi Dua and Ravindra Dolakia.