The Reserve Bank of India Governor Dr Urjit Patel will present the second bi-monthly policy review today. The apex bank is likely to announce a cut in interest rates.It also expected to adopt a dovish tone to reflect ebbing inflation risks. The RBI last cut its repo rate from 6.50 per cent to 6.25 per cent in the October 2016 policy review. Since then, there have been three policy reviews, but the central bank has kept its policy rate steady.Monetary Policy Committee (MPC) of the RBI held a meeting on Tuesday and will again sit today to finalize the modalities before it announces the bi-monthly policy statement today.While retail inflation fell to a low in April 2017 and the GDP growth slowed sharply in the fourth quarter of 2016-17, the RBI may prefer to wait it out.The central bank will be watchful for data on the impact of the implementation of Goods and Services Tax (GST), trajectory of the monsoon and the effects of the house rent allowances under the 7th Central Pay Commission award before taking a call on a rate cut.
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