Search the Internet          Tips  Sites: Finance, Investment

Bankers expect rate cut in Monetary and Credit Policy

Reserve Bank of India will conduct a mid-term review of Monetary and Credit Policy for 2002-03 on October 29 and is likely to reassess the projected growth rate of 6-6.5 per cent.

The RBI Governor Bimal Jalan would hold a meeting with the chief executives of major scheduled commercial banks for the review, RBI said in Mumbai on Thursday.

Bankers expect a cut in the bank rate as RBI had in its annual Monetary and Credit Policy in April had stated that a 50 basis point reduction may depend on the monetary development. It had, however, not fixed any timing for lowering the bank rate.

RBI in its annual report last month had also stated that it would reassess in the mid-term review the projected growth of 6-6.5 per cent, which was based on assumption of a normal monsoon.

The report had made it clear that a reassessment of the GDP growth would be attempted in October by which time reliable information regarding effects of drought on agricultural and industrial output would be available.

ALSO READ:
RBI Annual Report 2001-02
The Monetary and Credit Policy 2002-2003
More Money Headlines