Reserve Bank of India has been mandated by the government to ensure that theconsumer price index (CPI) based inflation is at four per cent, with a band of twoper cent on either side.
All 60 forecasters in a Reuters poll said they see no change in the repo rate on October 8 and the RBI is only expected to raise repo rates in April-June 2022
Expectations from RBI Monetary Policy Committee
Dr M Govinda Rao, Chief Economic Advisor of Brickwork Ratings said that the Reserve Bank is likely to continue with G-sap auctions in order to maintain the yields on government securities in check. He expects that the inflation rate may remain close to the upper bound target of six per cent in the near term. The central bank s committee may continue to pause on the interest rates by maintaining the accommodative stance to support growth as long as inflation remains within the target range of the monetary policy framework, he explained. The better-than-expected GDP numbers provide much-needed comfort to the MPC on the growth outlook. With the imposition of partial lockdown-like restrictions to contain the virus spread in several parts of the country, the downside risk on growth recovery has intensified..Considering the risk of inflation emanating from the rising commodity prices and input costs, Brickwork Rating
RBI Begins Deliberations Amid Expectations Of Status-Quo In Policy Rate The RBI had kept key interest rates unchanged at the last MPC meeting held in April.
Updated: June 02, 2021 2:23 pm IST
The Reserve Bank s rate-setting panel, Monetary Policy Committee (MPC), began its three-day deliberations on Wednesday amid expectations of a status quo on benchmark rate mainly on account of uncertainty over the impact of the second wave of COVID-19 pandemic. Moreover, the fears of firming inflation may also refrain the MPC from tinkering with the interest rate in its bi-monthly monetary policy outcome to be announced on Friday. The RBI had kept key interest rates unchanged at the last MPC meeting held in April. The key lending rate, the repo rate, was kept at 4 per cent and the reverse repo rate or the central bank s borrowing rate at 3.35 per cent.