RBI seen cutting rates in first monetary policy statement on April 5

Zee Media Bureau

New Delhi: The Reserve Bank of India is expected to go for a rate cut in its first bi-monthly Monetary Policy Statement for the year 2016-17, which will be announced on Tuesday, April 5,

As per reports, the Chairperson of State Bank of India, Arundhati Bhattacharya said, considering that  inflation is under control, the is likely to lower interest rate. However, she did not mention anything if the largest bank of the country will pass on the rate cut to the borrowers.

The declining inflation and a negative industrial outlook have strengthened the case for RBI to cut interest rate in its first bi-monthly monetary policy for 2016-17 on April 5.

Meanwhile, the Governor of the Reserve Bank of India Raghuram Rajan on March 12 had spoken positively of the government sticking to fiscal consolidation road map of reducing deficit to 3.5 percent of GDP in 2016-17.