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No scope for rate cut on Tuesday

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With the government adopting an inflation target of four per cent, the Reserve Bank of India (RBI) is likely to keep its policy rates unchanged on Tuesday in the year’s third bi- monthly monetary policy review.
Since January 2015, RBI has reduced its policy rates by 150 basis points to 6.50 per cent. With the adoption of the inflation target of four per cent, the chances for a further rate cut in the remaining part of the financial year seem slim, economists had warned in aBusiness Standard poll According to RBI’s projection, the rise in the consumer price index ( CPI) should follow a glide path to come down to five per cent by January 2017.
With the government adopting an inflation target of four per cent, the Reserve Bank of India (RBI) is likely to keep its policy rates unchanged on Tuesday in the year’s third bi- monthly monetary policy review.
Since January 2015, RBI has reduced its policy rates by 150 basis points to 6.50 per cent. With the adoption of the inflation target of four per cent, the chances for a further rate cut in the remaining part of the financial year seem slim, economists had warned in aBusiness Standard poll According to RBI’s projection, the rise in the consumer price index ( CPI) should follow a glide path to come down to five per cent by January 2017.
Business Standard New Delhi,06th August 2016

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