RBI MONETARY POLICY STATEMENT: RIGHT CALL IN UNCERTAIN TIMES
- Credit Rating Agency in India
- RBI Monetary Policy
- RBI MONETARY POLICY STATEMENT: RIGHT CALL IN UNCERTAIN TIMES
In the wake of the nation-wide rapidly rising COVID-19 cases and the consequential imposition of restrictions and lockdown in some States, including Maharashtra, the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) unanimously held the rates steady because the MPC wanted to ensure that “the prospects of sustained recovery are well secured”. All members of the MPC, viz., Shashanka Bhide, Ashima Goyal, Jayanth R Varma, Mridul K Saggar, Michael Debabrata Patra, along with RBI Governor Das unanimously voted for keeping the policy repo rate unchanged. Accordingly, the benchmark repo rate remained at 4 per cent, while the effective policy rate (reverse repo rate) stood at 3.35 per cent. This status quo ante policy was in conformity with our assessment and the expectations of most well-informed market participants.