RBI MPC begins; repo rate likely to be cut further

Reserve Bank of India’s Monetary Policy Committee (MPC) meeting began today to decide on the repo rate cut. Chaired by RBI Governor Sanjay Malhotra, the committee’s decision will be announced on Friday. According to economists and industry experts, the Central Bank is likely to go for a third 25 basis point cut in the repo rate to 5.75 per cent. A new SBI report has even projected a mega 50-basis point rate cut in June’s RBI MPC policy. The Reserve Bank has already reduced the repo rate by 50 basis points in the previous two monetary policy reviews, lowering it to 6 per cent.