SBI expects no rate cut from RBI in upcoming monetary policy

Mumbai, July 20 (KNN) The Reserve Bank of India (RBI) is likely to maintain the status quo in the forthcoming monetary policy, said State Bank of India (SBI) Chairman Dinesh Khara on Wednesday.

Speaking at CII Financial Inclusion & FinTech Summit, he said, “As a bank, we don't expect rate cut, status quo is likely to be maintained by the RBI.”

On June CPI inflation, Khara said that the headline print can be perceived as an aberration. 

In June, CPI inflation rose to a three-month high of 4.81% due to spike in food prices.

The MPC is scheduled to next meet on Aug 8-10 to which Khara said, “The Monetary Policy Committee (MPC) needs to see the trajectory of inflation.”

In its June 8, policy review meeting, the RBI left its key interest rate unchanged for a second straight policy meeting but signalled that it wants to see inflation moderate more while keeping an eye on the monsoon.

Khara said that private capex is moving in the right direction and it will pick up when “capacity utilisation rises”.

He added that financial inclusion has emerged as a key foundation for socio-economic empowerment and a critical enabler for the inclusive and holistic growth of the people.  (KNN Bureau)