It is expected that the apex bank of the country – RBI may further reduce down the rate by 0.25% in the monetary policy this week. Last month RBI had unexpectedly cut down the rates surprising everyone.
This time the industry is hopeful that a further reduction in policy rates. While lowering the policy repo rate to 7.75 per cent from 8 per cent, RBI last month had also said further rate cuts would depend upon inflationary expectations and improvement in the fiscal situation. Some banks like Oriental Bank of Commerce are waiting for an immediate rate cut. RBI can consider a rate cut of 0.25% tomorrow in the monetary policy.