RBI’s Monetary Policy Committee meet to begin today

[NiveRoshni]

RBI's Monetary Policy Committee meet to begin today



The six-member MPC, headed by RBI Governor Shaktikanta Das, will share the outcome of the meet on February 5.

The committee is forecast to leave the key policy rate unchanged, but watchers feel the Union Budget could trigger policy changes.

"We expect the MPC to continue the pause. The fall in inflation rate was mainly due to fall in food prices. The core inflation rate has not come down. Excess liquidity needs to be watched. The vaccine availability is not going to impact macro economy immediately," M Govinda Rao, Chief Economic Advisor, Brickwork Ratings told PTI.

The current repo rate or rate at which the RBI lends to banks is 4 percent. The central bank last revised its policy rate on May 22, in an off-policy cycle to perk up demand by cutting interest rates to a historic low. The central bank has cut policy rates by 115 basis points since February last.

Besides the interest rate decision, investors will also be keen to know the RBI's view of Budget 2021 and the economy.

Source : https://www.moneycontrol.com/news/business/economy/rbis-monetary-policy-committee-meet-to-begin-today-6438101.html/amp