NEW DELHI: (Sep 22) A SBI study released on Monday stated that there is merit and rationale for the Reserve Bank to reduce the key benchmark lending rate by 25 basis points in the forthcoming monetary policy, as retail inflation is expected to remain benign even in the next financial year.
The Reserve Bank of India (RBI) has already reduced the repo rate by 100 basis points since February, amidst declining consumer price index (CPI) based inflation. After reducing the repo rate three times in a row, the RBI hit a pause button in August.
The Reserve Bank Governor-headed Monetary Policy Committee (MPC), which decides on the interest rate, is scheduled to meet on September 29 for a three-day deliberation. The decision will be announced on October 1.