As the Monetary Policy Committee (MPC) meets on September 25/26, the financial and business community will be awaiting with bated breath the outcome of one of the most acrimonious but symbolic meetings of the committee in recent times.
This is because, it is happening at a time when political and populist considerations are likely to overshadow the policy and economic arguments. The most likely outcome is a split decision between the hawks and the doves in the committee.
However, in the final analysis there is likely to be a compromise which maintains the status quo with fringe adjustments to the CRR and the width of the asymmetric corridor.
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