Reserve Bank of India to cut rates for second consecutive time ahead of elections, say economists in poll16Photo© business-standard.com

Reserve Bank of India to cut rates for second consecutive time ahead of elections, say economists in poll

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The RBI’s rate setting panel Tuesday started its 3-day deliberations for the first bi-monthly monetary policy of 2019-20 amid expectations of a cut in key lending rate by another 25 basis points to boost economic activities.

The Reserve Bank of India (RBI) had reduced the repo rate by 25 basis points in February, after a gap of 18 months. A back-to-back cut in interest rate would provide relief to borrowers in the election season.The six-member Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das will announce the resolution of the meeting at around noon on Thursday. It would be the first bi-monthly monetary policy of 2019-20.

Das has already held meetings with stakeholders including industry bodies, depositors association, MSME representatives and bankers.