Monetary Policy Committee (MPC) of Reserve Bank yesterday started its three-day deliberations on the policy review. RBI Governor Shaktikanta Das is heading the meet. Expectations are high on another round of reduction in the key policy rate to revive the sagging economy. If the Reserve Bank cuts the repo rate on Thursday, it would be the sixth reduction in the short-term lending rate in 2019.
With five reductions so far, the repo rate has been lowered by a total of 135 basis points. This was mainly to fast pace growth momentum and also to try to boost liquidity in the financial system. The three-day MPC meet will be held till Thursday for the fifth bi-monthly Monetary Policy Statement for 2019-20.