The RBI's Monetary Policy Committee (MPC) has kicked-off its two-day meeting. While the Dalal Street is not expecting any move on interest rates, changes on liquidity side will be keenly watched.
According to a CNBC-TV18’s MPC Poll, 100 percent participants expect no repo rate cut in the meeting. For the current year – 2017 – 80 percent respondents expect no cut, while 10 percent a 25 basis point cut. Another 10 percent also expect a 25 bps hike in repo rate in the on-going year.
The Reserve Bank of India is also likely to take up the crucial issue of stressed assets in its on-going meeting. Around 80 percent participants believe some measures on NPAs will come.
Cash reserve ratio (CRR) – which is the amount of cash banks have to keep with RBI – is likely to hiked by 25 basis points, according to 10 percent correspondents.
The central bank is also likely to keep its FY18 gross value added (GVA) unchanged at 7.4 percent, as per 70 percent people. However, a 10 percent believe that it GVA forecast could be raised to 7.5-8 percent.Consumer Price Index (CPI) for first half of FY18 is expected to be unchanged at 4-4.5 percent. A small 10 percent expects this to be increased to 4.5-5 percent.