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RBI may go in for further 25 bps rate cut: Experts

The Monetary Policy Committee, headed by RBI Governor, is scheduled to meet for three days beginning August 4 and announce its decision on August 6.

July 26, 2020 / 06:04 PM IST

The Reserve Bank is likely to go in for a minimum 25 basis points cut in key lending rate in the forthcoming monetary policy review as the need to revive the coronavirus-hit economy is pressing notwithstanding marginal uptick in inflation, feel experts. The Monetary Policy Committee (MPC), headed by RBI Governor, is scheduled to meet for three days beginning August 4 and announce its decision on August 6.

The central bank has been taking steps proactively to limit the damage to the economy caused by the outbreak of COVID-19 pandemic and subsequent lockdowns to prevent the spread of the disease.

A fast-changing macroeconomic environment and deteriorating outlook for growth necessitated off-cycle meetings of the MPC – first in March and then again in May 2020.

The MPC cumulatively cut the policy repo rate by 115 basis points over these two meetings.