RBI can reduce rates again


Mumbai-The Reserve Bank of India (RBI) can cut further policy rates by 0.25 per cent in the next monetary policy review. Bank of America Merrill Lynch, an overseas brokerage company, has made such an estimate. This global brokerage house said that this is indicated by the speech by the governor of the Reserve Bank of the ruling party Das. In his address, there was an emphasis on accelerating economic growth. Earlier this institution had said that the Reserve Bank will make the next cut in monetary policy review in June or August. This deduction will depend on the condition of the rain.
Indeed, during the annual meeting of the International Monetary Fund in Washington, Das had emphasized the need to accelerate economic growth while staying below the inflation target. Bank of America Merrill Lynch said in a note that we now expect the Monetary Policy Committee to cut the policy rate by 0.25 per cent on June 7 and bring it to 5.75 per cent. If this happens then it will be a third consecutive time, when the policy rate is cut in the repo rate. Overall the cut will be 0.75 per cent, which is quite large.
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