The Reserve Bank of India will announce its bi-monthly monetary policy decisions today. The Monetary Policy Committee, chaired by RBI Governor Shaktikanta Das, began its three-day deliberations on Wednesday, amid concerns over rising inflation.
Experts believe the central bank is likely to maintain the status quo on the repo rate but may consider adjusting the cash reserve ratio, CRR.
The RBI has kept the repo rate, or short-term lending rate, unchanged at 6.5 per cent since February 2023.
A CRR cut could inject liquidity into the banking system, providing a cushion for economic activity. The CRR has remained unchanged at 4.5 per cent since May 2022.