June 6, 2016 7:08 PM

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RBI to announce bi-monthly monetary policy review for current fiscal tomorrow

Reserve Bank of India will announce its bi-monthly monetary policy review for the current fiscal tomorrow. With inflation rearing its head again and global crude oil prices inching up, the apex Bank is likely to maintain the status quo on interest rates, say experts. Besides, RBI may wait for the impact of delayed monsoon rains before making the next move.RBI has reduced the benchmark interest rate by 1.5 per cent since January last year. Since then, Governor Raghuram Rajan has been persuading banks to fully transmit the benefit of the policy rate cut to customers.Retail inflation soared to 5.39 per cent in April on higher food prices, reversing a downward trend seen in recent months. Besides rising inflation, the crude oil price is also looking up and has touched 50 US Dollar a barrel, from a low of about 30US Dollar and could increase inflationary pressures.

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