RBI to announce monetary policy decision on December 7

The Reserve Bank of India (RBI) will come out with monetary policy review, the first after demonetisation of old Rs 500 and Rs 1,000 notes, on Wednesday amid expectations of interest rate cut.

"The Monetary Policy Committee (MPC) will meet on December 6 and 7, 2016 for the fifth bi-monthly Monetary Policy Statement for 2016-17. The resolution of the MPC will be placed on the website at 2:30 pm on December 7, 2016," the central bank said.

Interestingly, the monetary policy reviews were usually announced on Tuesdays. For long, the central bank has been unveiling the monetary policy at 11:00 am.

ALSO READ: RBI seen cutting rates as demonetisation rattles economy: Reuters poll

It will be for the second time that the monetary policy would be based on the recommendation of the MPC.

There are expectations of rate cut (repo) as banks are flushed with funds following demonetisation of old high value notes from November 9.

RBI has already taken a host of steps, including 100% incremental increase in cash reserve ration (CRR), to suck out excess liquidity from banks.

ALSO READ: RBI introduces incremental CRR to manage excess liquidity