Shaktikanta Das, the Governor of the Reserve Bank of India, held a discussion with the heads of public sector banks and conveyed to them the expectation of Reserve bank from the banking sector, ahead of the monetary policy review.
Shaktikanta Das, Governor, Reserve Bank Of India said, “Basically, the idea was to 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.”
It is being speculated that the Reserve bank would cut interest rate in its upcoming monetary policy review which is scheduled to take place on February 7. The sixth bi-monthly monetary policy for 2018-19 would be the first monetary review under the leadership of new RBI governor.
According to the latest reports, the inflation based on the Consumer Price Index reached to an 18-month low of 2.19 per cent in December whereas the Wholesale Price Index-based inflation also dropped down to an eight-month low of 3.80 per cent in December. Thus the RBI is expected to change its policy stance from calibrated tightening to neutral in the upcoming policy.