The Reserve Bank of India will announce its final monetary policy for the current financial year today. The bank declares monetary policy every two months. Our correspondent has told that the Reserve Bank of India Monetary Policy Committee meeting is going on from Tuesday, after which the sixth monetary policy for the year 2019-2020 will be declared.
Experts believe that the central bank can keep the policy rate unchanged but will maintain a soft stance so that the cost of capital remains more favorable. The Monetary Policy Committee, which announces the key policy rate every two months, has been given the responsibility of keeping the retail inflation based on consumer price index at 4 per cent with a range of two per cent variation. Retail inflation rose to above seven percent in December 2019. The main reason for this is the rise in prices of vegetables. However, for several months before this, the inflation rate had remained satisfactory.