Reserve Bank’s first policy review after demonetisation on December 7; All eyes on Urjit Patel

Reserve Bank of India (RBI) Governor Urjit Patel is slated to appear before the Parliamentary panel on Wednesday in order to provide clarification on an array of queries related to demonetization.
Reserve Bank of India (RBI) Governor Urjit Patel is slated to appear before the Parliamentary panel on Wednesday in order to provide clarification on an array of queries related to demonetization.

Mumbai, Dec 03: Fifth bi-monthly policy review for the year 2016-17 and the first after the demonetisation was imposed in country on November 8 will take place at the Reserve Bank of India’s two days review talks on December 6 and 7.

The ban on Rs 500 and Rs 1,000 high value notes has given rise to the hopes that the central bank would go for a rate cut given the uncertain fiscal environment in country due to sever cash crunch.

Interestingly, Wednesday’s policy review is going to be second policy stance to be decided by the Monetary Policy Committee (MPC) formed on the lines of the Federal Open Market Committee (FOMC) in the US.

RBI governor Urjit Patel who dragged much flag for vanishing from the post-demonetisation scene will take part in his second policy review decision since he assumed office on September 5.

Earlier, the RBI governor in consultation with three deputy governors used to take a call on key rates.

The MPC that was formed to take a unanimous call on rate cut will put up its result on the RBI’s website at 2.30 pm on Wednesday.

In the last policy review, the central bank broke away from its tradition of holding a press meet at 11 am after taking decision on key policy rates.

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