MPC Meet to Begin Amid Rate Cut Buzz

The meeting of the six-member monetary policy committee (MPC) of the Reserve Bank of India (RBI) will start on Monday—the first in the current financial year—amid expectations of another 25 basis points (bps) cut in the policy repo rate, though there are outside chances of a higher rate reduction.

- ANJALI KUMARI

Also, focus will be on liquidity-related measures to boost transmission of policy rates to bank lending and deposit rates. The central bank had a series of meetings with bankers in the run-up to the policy, for feedback on the liquidity framework. A revised liquidity framework is also on cards.

The April MPC meeting is in the backdrop of the reciprocal tariffs announced by US President Donald Trump last week, which is expected to impact domestic growth.

It is to be seen if the central bank now prioritizes growth over inflation—which is expected to print below the target of 4 per cent for the next few months—by changing the stance to accommodative from neutral.