RBI's First Policy Review Of Fiscal On 7th April
MUMBAI: The Reserve Bank of India is to announce its first bimonthly monetary policy review of the current fiscal on Tuesday, the 7th April, when it is widely expected to leave the repo rate, at which it lends to commercial banks, unchanged at 7.50 per cent.
"Not expecting any rate cuts this time, not for another one or two months," Vinod Nair, head of fundamental research at Geojit BNP Paribas Financial Services, told IANS here.
"It is very difficult this time with retail inflation increasing. The RBI would also like to look at the public sector banks' distressed loans restructuring issues during the last quarter," he added.
Nair also noted that the RBI was waiting to see the impact of a possible hike in U.S. interest rates by the Federal Reserve in early June, though even that appears less likely.
Meanwhile, industry chamber Ficci said that any cut in interest rates would not be "adequate to stimulate investment in manufacturing" given the lack of "significant change in demand conditions".
The Federation of Indian Chambers of Commerce and Industry (Ficci), in its latest quarterly survey, said 69 per cent of respondents do not foresee any substantial increase in investments by their organization as a result of rate reduction by the RBI.
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