A security guard stands at the gate of the Reserve Bank of India (RBI) headquarters in New Delhi. (Photographer: Anindito Mukherjee/Bloomberg).  

Shaktikanta Das Meets PSU Banks’ Chiefs, Conveys RBI’s Expectations

Reserve Bank of India Governor Shaktikanta Das met heads of public sector banks today and conveyed to them the regulator’s expectation from the banking sector, ahead of the monetary policy review.

The RBI is scheduled to announce its sixth bi-monthly monetary policy for 2018-19 on Feb. 7. It would be the first monetary review under the new RBI governor.

Basically, the idea was convey to them the regulator’s expectation from the banking sector in general and public sector banks in particular, and also to get from them their understanding of the current banking situation, and to get an understanding about the future outlook, the sense they have.
Sahktikanta Das, Governor, Reserve Bank Of India

It is widely expected that the RBI would cut interest rate in its upcoming review meeting.

With softer retail and wholesale price-based inflation, the RBI is likely to change its policy stance to “neutral” from “calibrated tightening” in the February policy.

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The inflation based on the Consumer Price Index eased to an 18-month low of 2.19 percent in December compared to 2.33 percent in November and 5.21 percent in December 2017.

The Wholesale Price Index-based inflation also eased to an eight-month low of 3.80 percent in December against 4.64 percent in November and 3.58 percent in December 2017.

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