RBI likely to harden monetary policy

Reserve Bank of India
Reserve Bank of India (RBI)

Mumbai, July 31 : The Reserve Bank of India is slated to announce its third bi-monthly monetary policy review statement on August 1.

With retail inflation in India having regained the 5 per cent mark,and a falling rupee, RBI monetary policy will likely be focused on projected growth-inflation dynamics in the first quarter of first half of 2019. The widening current account deficit in an election year is also a key monitorable for the policymakers.

Currently, the repo and reverse repo rates stand at 6.25 per cent and 6 per cent, respectively.So interest-rate policy at this week’s meeting will impact growth-inflation dynamics .

Besides the review, investors were also cautious about the upcoming macro-economic data points of Eight Core Industries (ECI) and the fiscal deficit figures.

According to market observers, heavy selling was witnessed in banking, oil and gas and metals stocks.


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