Press Trust of India
New Delhi, Jun 6: Reserve Bank Governor Urjit Patel-led Monetary Policy Committee (MPC) Tuesday began its bi-monthly interest rate review amid the government pitching for a reduction in borrowing cost to help push private investments.
Most analysts, however, expect no change in interest rates in view of more than $60 billion of excess liquidity in the system.
Those seeking a cut in interest rates cite consumer price inflation slowing down to 2.99 per cent in April, economic growth during the last fiscal at its slowest pace in two years and weakest loan demand since at least 1992.
Meanwhile, Bank of America Merrill Lynch (BofAML) has in a report stated that the MPC is expected to maintain a dovish stance Wednesday, but might go for a 25 bps slash in repo rate in August on good monsoon.
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