RBI Governor Urjit Patel may be able to cut rates but only later this year. We take a look at what this would mean for the Indian economy.
When will Reserve Bank of India (RBI) Governor Urjit Patel cut interest rates? Speak to analyst, economist or businessman; that will be among his top two or three concerns.
The central bank dashed hopes for a rate cut in December when the six-member Monetary Policy Committee (MPC), which sets rates, decided to retain the repo rate, the rate at which the RBI lends to banks and the key rate that banks use as a benchmark for the lending and deposit rates, unchanged at 6.25 per cent.
The apex bank adopted this hawkish stance despite retaining its March-end retail inflation projection at 5 per cent. It, however, cautioned that high oil prices and rising interest rates abroad could once again fan inflation.