RBI likely to hold rates

• According to a Business Standard survey, the six-member monetary policy committee (MPC) in India is not expected to be perforated with the lowering interest rate tendency in their next review meeting.
• IDFC First Bank alone expects a 25bpts cut in policy repo rate.
• The last 10 reviews of MPC warranted no alteration in the repo rate.
• Most of the respondents expect that growth and inflation estimates for the current financial year will be revised.
• The bank may cut its growth forecast from 7.2% and aerate its inflation outlook from 4.5%.

Repo Rate

• Repo rate is the interest rate charged by the Reserve Bank of India when lending money to commercial banks.
• Any alterations in repo rates can influence the economy directly.

Reverse Repo Rate in India

• Provides interest rate by RBI for borrowing from commercial banks.
• Charged by banks to park excess money with RBI for short-term.
• Crucial monetary policy instrument controlling money supply.