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Ahead of monetary policy, RBI governor Urjit Patel holds meeting with FM Jaitley

This would be the Reserve Bank of India’s first monetary policy announcement for 2018-19.

business Updated: Mar 30, 2018 22:24 IST
Press Trust of India
Press Trust of India
Press Trust of India, New Delhi
RBI monetary policy,Reserve Bank of Indian monetary policy,Reserve Bank of India
The RBI seal is pictured on a gate outside the central bank’s headquarters in Mumbai on February 2, 2016. (Reuters)

Reserve Bank governor Urjit Patel held a meeting with finance minister Arun Jaitley and is believed to have discussed the current economic situation, ahead of the first bi-monthly monetary policy review next week, according to sources.

This would be the first monetary policy announcement for 2018-19.

Patel held a meeting with Jaitley on Thursday, sources said without divulging specific details.

Pressure has been mounting on the RBI to cut interest rate in the wake of declining retail inflation and the need to fuel growth momentum.

However, the Reserve Bank of India (RBI) would have to do a tightrope walk as globally interest rates are moving northwards, experts opined.

Currently, the key rate at which the RBI lends to banks is 6 per cent.

The six-member Monetary Policy Committee (MPC), is to meet on April 4 and 5 to decide the monetary policy.

The industry has been pitching for a cut in interest rate.

The retail inflation based on the Consumer Price Index (CPI), which the RBI factors in while deciding policy rate, fell to a 4-month low of 4.44 per cent in February. It was at 5.07 per cent in January.

First Published: Mar 30, 2018 21:48 IST