The upcoming Reserve Bank of India (RBI) monetary policy meeting on 4 October has assumed more importance than most as markets will hear from the newly-appointed governor Dr Urjit Patel for the first time after he took charge on 6 September. In addition, the freshly constituted Monetary Policy Committee (MPC) is likely to preside over its first policy decision. Fresh guidance on the future direction of monetary policy will be more keenly watched than the specific decision announced next week. An announcement to advance the statutory liquidity ratio (SLR) reduction to 2016 from January 2017 or to increase the overlap between the SLR and liquidity coverage ratio (LCR) would be positive. This is the first in a series of expert columns in the run-up to RBI’s bi-monthly policy meeting on 4 October.

Source: Mint September 27, 2016 19:30 UTC