RBI Governor to hold pre-policy meet with trade bodies, rating agencies on Mar 26

New Delhi, Mar 17 Reserve Bank of India (RBI) Governor Shaktikanta Das will hold discussions on March 26 with agents of trade bodies and credit rating agencies on interest rate and steps to boost economic activities, said sources.

The meeting, which comes ahead of the next financial year's first MPC meet planned for April 4, is gone for expanding the consultation procedure, they included.

The bi-monthly policy, to be settled by the six-part Monetary Policy Committee (MPC), assumes significance as it would be declared only seven days before the initiation of the seven stage general elections starting April 11.

"The pre-policy consultation meeting" with the governor will occur in Mumbai on March 26, the sources said.

Besides trade bodies, including industry chambers and rating agencies, the governor has also called delegates of the All India Bank Depositors' Association.

Das has been meeting industry chambers, non-banking financial companies bankers, government delegates and rating offices to evoke their views on various parts of the economy and the measures they anticipate from the central bank.

Soon after taking charge as the 25th governor of the RBI in December 2018, he had guaranteed to take all partners, including the legislature, along on key policy issues to keep up development while keeping inflation under check.

While the RBI cut the interest rate in its February financial strategy following a hole of year and a half, industry has begun clamouring for another rate cut as retail inflation is beneath the RBI's benchmark of 4 percent and requirement for boosting development is squeezing.

There have also been complaints that banks don't pass on the whole advantage of arrangement rate cut to borrowers.

A month ago, the governor had held meeting with high ranking representatives of public and private sector banks to talk about rate transmission and convince them to pass on the benefit of lower interest rates to the consumers.