Mixed expectations ahead of RBI decision

The meeting is taking place against the backdrop of falling inflation, rising GDP growth, the rupee crossing 90 against the dollar and ongoing geopolitical tensions

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RBI Governor Sanjay Malhotra will announce the bimonthly monetary policy on Friday amid mixed expectations of a 25 basis points rate cut as well as the possibility of the central bank opting for status quo.

Reserve Bank's rate-setting panel -- Monetary Policy Committee (MPC)-- started its three-day deliberation on the next set of bimonthly monetary policy Wednesday.

The RBI reduced the key short-term lending rate (repo) by 100 basis points in three tranches, beginning in February, amid declining consumer price index (CPI) based inflation.

Several experts said that while growth remains robust, a significant decline in retail inflation has created additional room for a reduction in the key short-term lending rate.

Even the RBI Governor last month had said that there is a scope to further reduce policy interest rates.