The Reserve Bank of India is expected to hold a media interaction later in the day today. It is widely expected that the central bank will cut rates and announce measures to boost sentiment.
The RBI held its benchmark repurchase (repo) and reverse repo during its February 6 monetary policy meeting at 5.15 per cent and 4.90 per cent respectively
The 6-member Monetary Policy Committee (MPC), headed by RBI Governor Shaktikanta Das, unanimously voted to hold the key repo rate at 5.15% and reverse repo rate at 4.90%
Whilst the noise on feasibility of budget numbers and risks on sovereign borrowing would persist in the near term, the budget outcome has certainly eased the job for RBI MPC to ease rates further
While Budget 2018 has hiked minimum support prices, the inflationary impact is likely to be muted as ruling wholesale prices are already higher than the revised MSP