INSUBCONTINENT EXCLUSIVE:
The policy repo rate is currently 4 per cent and reverse repo rate is 3.35 per centRBI Guv Shaktikanta Das-headed rate-setting panel MPC
began its three-day deliberation on the next monetary policy on Monday in the middle of unexpected surge in COVID-19 cases and the federal
government's current required asking the central bank to keep retail inflation around 4 per cent
The Reserve Bank will reveal the resolution of the Monetary Policy Committee (MPC) on April 7
Experts are of the view that the Reserve Bank will keep status quo on policy rates at its very first bi-monthly monetary policy review for
It is also likely to keep an accommodative policy stance.The policy repo rate or the short-term loaning rate is presently at 4 percent, and
the reverse repo rate is 3.35 per cent.Last month, the federal government had asked the Reserve Bank to keep retail inflation at 4 percent,
with a margin of 2 per cent on either side for another five-year period ending March 2026
M Govinda Rao Chief Economic Consultant, Brickwork Scores (BWR) said, offered the increase in the spread of coronavirus infections and the
imposition of fresh constraints to contain the infection spread in the huge parts of the nation, RBI is most likely to continue with its
accommodative monetary policy position in the upcoming MPC conference
Considering the raised inflation levels, BWR expects the RBI MPC to embrace a careful technique and hold the repo rate at 4 percent, Mr Rao
said.Mr Rao noted that in the last MPC, RBI initiated measures towards the rationalisation of excess liquidity from the system by announcing
a phased walking in the money reserve ratio (CRR) for restoration to 4 percent
In the existing scenario, the RBI might like to drain pipes in excess liquidity, while higher loanings and the frontloading of 60 per cent
loanings in H1 FY21 may put pressure on yields, and thus, the RBI may go sluggish in reversing its liquidity determines announced as a COVID
stimulus because March 2020, Mr Rao added.Meanwhile, G Murlidhar, MD and CEO, Kotak Mahindra Life Insurance Business said 2021 has actually
seen an increase in yields around the world in line with vaccination led optimism
Nevertheless, the case for India is a little various this time, with quick increase in new COVID cases over last few weeks
In upcoming policy, MPC might continue to stress the value of organized development of yield curve given benign inflation trajectory and
second wave headwinds to nascent growth healing, said Mr Murlidhar.In a bid to manage rate increase, the federal government in 2016 had
provided a mandate to RBI to keep the retail inflation at 4 percent with a margin of 2 per cent on either side for a five-year duration
The central bank primarily consider the retail inflation based on consumer rate index while coming to its financial policy
On February 5, after the last MPC satisfy, the central bank had actually kept the crucial rates of interest (repo) unchanged citing
