Reserve Bank unlikely to reduce rates, policy stance

THE reconstituted Monetary Policy Committee's (MPC) first meeting that began here on Monday comes in fraught times after the escalation of conflict in the Middle-East has sent crude prices skyward, completely diminishing any chance of an interest rate cut.

- BENN KOCHUVEEDAN

A rate cut possibility was seen likely after the US Fed stumped the markets with a historic 50 bps reduction in interest rates earlier last month.

Even a change in the monetary policy stance is bleak. If the MPC leaves the rates changed at 6.5%, it will be for the tenth time the panel has opted for status quo. The Reserve Bank will announce the policy decision on October 9.