Mumbai, Dec 7: The Reserve Bank of India’s Monetary Policy Committee (MPC) is likely to announce key interest rates today. Amid increase in deposits following demonetisation of Rs 500 and Rs 1,000 notes, RBI is expected to cut interest rates. While, generally the policy is announced on a Tuesday, this is the first time after many years that the RBI policy will be announced mid-week, on a Wednesday.
While this is the fifth bi-monthly policy, it will be the second monetary policy announcement after Governor Urjit Patel took over as the RBI governor on September 4. The policy was earlier slated to be announced on December 6. During the second meeting, the RBI had cut or the short-term lending rate, by 0.25 percentage points to 6.25 per cent. RBI has reduced the policy rate by 1.75 percentage points since January 2015.
