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MPC meet: CRR cut to boost liquidity, status quo in policy rates likely
The New Indian Express
|December 04, 2024
THE Reserve Bank's rate-setting panel MPC meet begins here on Wednesday amid a rash of negative macro data surprises.
The government reported a 5.4% GDP growth for the second quarter, leaving the central bank, which has been stridently focusing on taming inflation since February 2023, with little choice but to begin to support growth now. This has many Mint Road observers and bankers expecting the monetary policy announcement on December 6 to offer some growth-boosting measures like a cash reserve ratio (CRR) or statutory liquidity ratio (SLR) reduction but not to tear into the policy rates given the sticky inflation numbers.
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