Mumbai: The RBI on Tuesday began its policy review meeting amid widespread expectations that the Monetary Policy Committee (MPC) headed by Governor Shaktikanta Das would slash benchmark interest rate to revive the sagging economy.
The Governor has already hinted that the benign inflation provides room for further monetary policy easing while space for fiscal space is limited. Giving some pressure on the committee, the Stock market showed some negative signals on Tuesday by shedding over 700 points during the early trades. Analysts say the decision by the Reserve Bank of India in its upcoming bi-monthly review will be monitored closely. Many economists expect the central bank to announce a rate cut on Friday.