The Reserve Bank of India is to announce quarterly monetary policy review today. The ease in inflation in the recent times has raised the hopes that the policy rates may be reduced in the review.

However, there has been no such indication from the apex bank about the lowering of policy rates in this policy review. Policy rates were kept unchanged in the last monetary policy review held in December. The decision was considering the visible slowdown in the inflation rate.

The latest Macroeconomic and Monetary Developments (MMD) report stated, "While in the short run, moderating inflation will provide some space for monetary policy to address growth concerns, in the absence of structural measures to address supply bottlenecks, this will, at best, be a temporary respite."

Considering the report, it is very unlikely that the interest rates will be reduced in today's monetary policy review.