February 2, 2016 7:15 AM

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RBI to announce 6th bi-monthly monetary policy review for 2015-16 today

The Reserve Bank of India will announce its sixth bi-monthly monetary policy review for the year 2015-16 today. According to experts, RBI may keep interest rate unchanged in the monetarypolicy review today as inflation trends upwards. Wholesale Price Index, WPI as well as retail inflation has been on rising trend. In December WPI-based inflation stood at negative 0.73 per cent, while retail inflation was at 5.61 per cent. Experts said, RBI may possibly take a call post Budget 2016-17, which will give a direction about key macroeconomic parameters, including fiscal deficit.However, some experts also feel that there is a case for front-loading of interest rate cut to give a push to economy. Yes Bank Managing Director Rana Kapoor said, they can hope for rate cut. According to a Citi report, RBI is likely to keep key policy rates unchanged until the budget and go for a 0.25 per cent easing in March or April this year. HSBC said, it expects RBI to maintain status quo in the policy review and wait for the fiscal roadmap presented in the Budget.The repo or the short-term lending rate at which banks borrow from RBI came down to 6.75 per cent. In the last calender year, RBI reduced key policy rates by 1.25 percentage points.

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