The MPC meeting will begin from June 4 on the impact of the second wave of Corona on the Indian economy and its improvement. In this, all eyes will be on the announcement on the interest rate.
Reserve Bank of India
A meeting is organized every two months by the Monetary Policy Committee (MPC) of the Reserve Bank of India. In which the improvement of the economy is discussed. This time this meeting will be held on June 4. Due to the second wave of Corona, strict restrictions imposed in different parts of the country during April and May have affected the Indian economy. In such a situation, all eyes are on the MPC meeting. However, RBI has indicated that there will be no significant change in interest rates.
Experts believe that the Reserve Bank of India (RBI) may announce to keep the interest rate at the current level in its upcoming monetary policy review meeting due to rising inflation and the continuing uncertainty amid the second wave of the COVID-19 epidemic. . The meeting of the rate setting panel headed by RBI Governor Shaktikanta Das is to be held from June 2 to 4. Earlier in the last MPC meeting held in April also, RBI had kept the key interest rates the same. Apart from this, the prime lending rate, the repo rate was kept at 4 percent and the reverse repo rate or the central bank’s lending rate was kept at 3.35 percent.
It has already been made clear in the RBI annual report released last week that monetary policy will be conducted in the financial year 2021-22 with the objective of developing macroeconomic conditions. Unless the situation of development becomes the same as before, there is little chance of change. The report said that the central bank will ensure that system-level liquidity remains comfortable during 2021-22. Also maintaining financial stability.
The RBI assessment found that pressure on the evolving CPI inflation trajectory could increase. Food inflation will also depend on the temporal and spatial progress of the southwest monsoon this year. Whereas, the risk in inflation due to rising petroleum prices will hinder MPC related action.
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