• SENSEX
    NIFTY 50
VIDEOS
Business

RBI monetary policy: Here's what you should watch out for

Updated : October 03, 2019 10:32 PM IST

The Reserve Bank of India (RBI) will release its fourth bi-monthly monetary policy for 2019-20 on Friday. As the festive season is almost here and the D-Street is expecting a Diwali gift. Will the central bank cut rates for the fifth time in a row?

The recent volatility in crude oil prices following the drone attacks on Saudi Aramco, coupled with the potential impact of the government's recent fiscal measures on fiscal deficit & inflation, could mean that the room for a rate cut may be limited.

The majority of respondents polled by CNBC-TV18 said the six-member monetary policy committee (MPC) will deliver a 25 bps cut and 40 percent expect a 40 bps cut.

For the entire fiscal year including the October policy, a majority expect a sum total of 40 bps reduction in repo rates and few even expect a 50 bps cut.

The industry is also clamouring for a rate cut tomorrow. In fact, some believe a sharp one-time cut in rates is more effective than a gradual easing. CNBC-TV18's Latha Venkatesh shares her take on tomorrow's monetary policy meet.
primo org
Have you signed up for Primo, our daily newsletter?
It has all the stories and data on the market, business, economy and tech that you need to know.
cnbc two logos
To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more
Live TV