Shaktikanta Das, Governor of Reserve Bank of India (RBI) will meet chambers of industry and commerce tomorrow in order to understand prevalent issues and concerns. Das tweeted “Will meet the apex chambers/associations of industry and commerce tomorrow (17th January).”
The meeting is scheduled ahead of the sixth bi-monthly monetary policy statement for 2018-19 which is set to take place on February 7. The upcoming policy review will be the first bi-monthly monetary policy under the leadership of 25th Governor of RBI, who took charge last month.
Das after taking the charge as the governor has been consulting with various stakeholders including non-banking financial companies (NBFCs), banks, and micro, small and medium enterprises (MSMEs).
After the latest reports of declining inflation and industrial production, speculation is been made regarding interest rate cut. The inflation rate based on retail price or CPI continued to decline to an 18-month low of 2.19 per cent in December 2018. WPI or wholesale based inflation rate also eased to an eight-month low of 3.80 per cent in December.
The Index of Industrial Production (IIP), however, fell to a 17-month low of 0.5 per cent in November on account of contraction in the manufacturing sector, particularly consumer and capital goods. Thus the RBI, which is tasked to maintain the inflation near 4 per cent might cut the interest rate to boost the factory output.