Debate rages if Monetary Policy Committee will cut repo rate

By Venkatachari Jagannathan

Chennai, Aug. 5 -- The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) can reduce the repo rate by 25 basis points (bps) in its upcoming meeting, as there are several compelling reasons to do so, said a top economist with Emkay Global Financial Services Ltd.

However there are other economists who do not expect the MPC to reduce the repo rate-the rate at which RBI lends to banks- as it has already front loaded the cut in the last meeting.

Economists also believe the reciprocal tariff of 25 per cent levied by the US on imports from India may not have much impact on India's gross domestic product (GDP) growth.

The six-member MPC is holding its bi-monthly meeting from August 4-6, and RBI Governor Sa...