Amid industry’s demand for interest rate cuts, the Reserve Bank of India (RBI) will come out with the first quarter review of Monetary Policy on July 28.
“RBI Governor D Subbarao will release the first quarter review of Monetary Policy 2009-10 on July 28,” the central bank said in a release today. The statement further said the review would be released at a meeting of the chief executives of major scheduled commercial banks on July 28 in RBI’s central office in Mumbai.
With inflation turning negative, industry has been demanding interest rate cuts. “India does not suffer from any demand constraints, therefore there is no concern of deflation,” Subbarao said.
Although the wholesale price index was negative, there were certain parts of the index such as food articles where inflation was significant, he said.
At the same time, oil prices were firming up, he said, adding that there was talk global food production will be lower than the trend. “We will take into account all these developing trends in the July review,” Subbarao had said. Even after a rise, inflation remained negative at 1.14 per cent during the week ended June 13. According to the RBI annual monetary policy, inflation is projected at 4 per cent at the end of March 2010.
