Dolat Capital: MPC Pauses, Prioritises Growth And Supports Impacted Segments   

Dolat Capital: MPC Pauses; Prioritizes Growth And Supports Impacted Segments 

A sign for the Reserve Bank of India (RBI) sign is displayed inside central bank’s headquarters in Mumbai, India (Photographer Dhiraj Singh/Bloomberg)

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Dolat Capital Report

The Monetary Policy Committee kept the repo rate unchanged at 4% and retained the ‘accommodative’ stance in its October session citing that revival of the economy from the unprecedented Covid-19 crisis assumes the highest priority in guiding the monetary policy ahead.

The decision does not come as a surprise given the steep inflation trajectory.

The Reserve Bank of India has been very efficient and proactive in communicating a clear favor towards growth.

MPC expects inflation to ease gradually towards its target range over Q3 and Q4 as supply disruptions normalises in due course.

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Dolat Capital RBI Monetary Policy 09 Oct 2020.pdf
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