RBI Monetary Policy: Repo Rate, Reverse Repo Rate, Policy Stance — What to Expect
News 18The Reserve Bank of India is likely to maintain status quo on benchmark interest rate in its second Monetary Policy Meet of this fiscal, scheduled on June 4. Experts believe the central bank will keep the policy rates unchanged and maintain accomodative stance on account of uncertainty over the impact of the second wave of COVID-19 and fears over inflation. “With the second wave of COVID – 19 that has brought about a new phase of economic uncertainties, we expect RBI to remain growth supportive and leave the policy interest rates unchanged in the upcoming policy,” said Shishir Baijal, chairman and managing director, Knight Frank India. With the second phase of the pandemic impacting consumption and growth, the MPC will likely maintain status quo on policy rates, continue with an accommodative policy stance and ensure adequate liquidity in the system – all in an effort to stimulate growth.