RBI likely to leave repo rate unchanged in Aug policy meet

TIL Desk/Business/Mumbai/ The Reserve Bank of India is likely to leave repo rate unchanged in the upcoming policy review meeting and the Monetary Policy Committee may look for “unconventional policy measures” to ensure financial stability, says a report.

The Monetary Policy Committee (MPC), headed by RBI Governor, is scheduled to meet for three days beginning August 4 and will announce its decision on August 6. “We believe an August rate cut is unlikely.  “We believe that the MPC could now well debate what further unconventional policy measures could be resorted to in the current circumstances to ensure financial stability is continued to be addressed,” an SBI research report- Ecowrap said.

With the 115 basis points (bps) reduction in repo rate beginning February, banks have already transmitted 72 basis points to the customers on fresh loans and some large banks have transmitted as much as 85 basis points, it said.