New Delhi: The Reserve Bank of India (RBI) will on Tuesday unveil its monetary review policy, and is unlikely to change its interest rates. Home buyers also need not expect any change in their EMIs, as RBI Governor Raghuram Rajan is set to maintain status quo in the credit policy of the central bank.
Meanwhile, reports said that the RBI is expected to wait until after the government's annual budget statement at the end February to decide on whether to cut interest rates further, rather than take the plunge at a policy review on Tuesday.
Having cut the policy repo rate by 125 basis points in 2015, RBI Governor Raghuram Rajan warned on Friday against straying from the path of fiscal consolidation or relaxing the fight against inflation.
The government is due to deliver its 2016/17 budget on February 29 along with plans on how it intends to stagger a 24 percent increase in salaries and pensions for some 10 million current and former government employees.
If the fiscal deficit stays within reason, then inflation trends over coming months could also favour hopes for lower interest rates.
(With Reuters Inputs)
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