RBI to maintain status quo on key policy rate: Experts
by Nidhi Bhati
The Reserve Bank of India (RBI) is likely to maintain status quo on policy rates at its first bi-monthly monetary policy review for the current fiscal, as per experts. They opine that a sudden surge in Covid-19 cases and the government’s recent mandate asking the central bank to keep retail inflation around four per cent may prompt the RBI to opt for an accommodative stance. The sharp new wave of Covid-19 cases has reignited uncertainty regarding the economic outlook in the immediate term. Icra’s Principal Economist Aditi Nayar expects the Monetary Policy Committee (MPC) to maintain the accommodative stance over at least the next two policy reviews, possibly until the vaccines become available in India for all adults. RBI Governor Shaktikanta Das headed six-member MPC is scheduled to meet from 5-7 April 2021. The policy meet outcome will be announced on 7 April 2021.