RBI to hold monetary policy meeting today
24 July 2012 11:40 PM GMT
Ahead of its quarterly monetary policy review, the Reserve Bank of India (RBI) will hold a meeting on Tuesday to firm up the policy action against the backdrop of prevailing macro-economic conditions.
The central bank is scheduled to announce first quarter review of monetary policy on 31 July. RBI is widely expected to maintain status quo as inflation at 7.25 per cent in June is above its comfort level of 5-6 per cent.
The meeting to be chaired by RBI governor D Subbarao is expected to decide on policy response to deal with decelerating growth and rising inflation.
The meeting at RBI’s headquarters in Mumbai will also be attended by Deputy governors and senior officials of the central bank.
The meeting assumes significance as the commerce ministry as well as the industry has called for a cut in interest rates to boost economic growth, which fell to a nine-year low of 6.5 per cent in 2011-12.
Although the factory output figures showed some improvement in May at 2.4 per cent, over a contraction of (-) 0.9 per cent in April, the industry has been demanding a cut in interest rates for fuelling growth momentum.
‘We will urge the RBI to revisit this issue (interest rates) to ensure that capital is available to the industry... given the slowdown, there is every justification to ensure that Indian industry remains competitive and manufacturing grows,’ commerce and industry minister Anand Sharma had said.
The central bank is scheduled to announce first quarter review of monetary policy on 31 July. RBI is widely expected to maintain status quo as inflation at 7.25 per cent in June is above its comfort level of 5-6 per cent.
The meeting to be chaired by RBI governor D Subbarao is expected to decide on policy response to deal with decelerating growth and rising inflation.
The meeting at RBI’s headquarters in Mumbai will also be attended by Deputy governors and senior officials of the central bank.
The meeting assumes significance as the commerce ministry as well as the industry has called for a cut in interest rates to boost economic growth, which fell to a nine-year low of 6.5 per cent in 2011-12.
Although the factory output figures showed some improvement in May at 2.4 per cent, over a contraction of (-) 0.9 per cent in April, the industry has been demanding a cut in interest rates for fuelling growth momentum.
‘We will urge the RBI to revisit this issue (interest rates) to ensure that capital is available to the industry... given the slowdown, there is every justification to ensure that Indian industry remains competitive and manufacturing grows,’ commerce and industry minister Anand Sharma had said.
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