RBI monetary policy review: Change in interest rates unlikely

New Delhi: The Reserve Bank of India (RBI) is likely to keep interest rates unchanged at its first bi-monthly monetary policy review of this fiscal due on Thursday.

The rate-setting  six-member Monetary Policy Committee (MPC) on Wednesday began its 2-day meeting in this regard.

Expectations that the RBI will maintain status quo on rates has been fuelled by inflation numbers, with wholesale inflation soaring to over a three-year high of 6.55 percent in February while retail inflation climbed to 3.65 percent due to rise in food and fuel prices.

At its last policy review of the previous fiscal in February, the RBI had kept its repo or short term lending rate for banks unchanged at 6.25 percent, saying it awaits more data on inflation trends and the impact of demonetisation on economic growth.

In Urjit Patel's first policy review as RBI Governor in October, which was also the maiden review of the MPC, the repo rate was reduced by 0.25 percent to 6.25 percent.
Since then, the repo rate has been retained at 6.25 percent. However, RBI has cut repo by 1.75 percent since January 2015.

With Agency Inputs