Key Highlights: 

  • RBI kept repo rate unchanged in June policy
  • CPI and WPI inflation below 1.5% currently
  • Policy repo rate stands at 6.25% 

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The Reserve Bank of India (RBI) and Monetary Policy Committee (MPC) will announce its August bi-monthly monetary policy on August 2, 2017. 

While one could talk about several factors supporting a repo rate cut in the bank's monetary policy, let's consider if there is any probability for a status quo.

At present, the policy repo rate under liquidity adjustment facility (LAF) stands at 6.25%.

The only time when benchmark interest rate was seen below 6% was between January 2009 and August 2010 following the 2008 global financial crisis.

RBI August monetary policy: A 25 basis point rate cut or higher?

  • RBI Governor meets Jaitley before monetary policy review
  • Low inflation to encourage RBI to cut rates next week: Reuters poll
  • RBI August policy: A 25 basis points rate cut in the offing?