Expectations From RBI's Monetary Policy: CARE Ratings

Expectations From RBI's Monetary Policy: CARE Ratings

A pedestrian talks on a mobile phone as he walks past Reserve Bank of India (RBI) signage outside the central bank’s headquarters in Mumbai. (Photographer: Kuni Takahashi/Bloomberg)

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CARE Ratings Research Report

The Reserve Bank of India’s Monetary Policy Committee will present its third bi-monthly monetary policy for 2021-22 on August 06, 2021.

This policy comes in the backdrop of the prevailing second wave of the pandemic and the measured easing of region-wise restrictions that have been in place for over four months in most areas, posing a setback to the hoped-for revival of the country’s economy.

The MPC will also have to reckon with the buildup in inflationary pressures, rising bonds yields, low bank credit-offtake, and mixed signals on the economic front.

We expect the RBI to continue with the accommodative monetary policy stance and retain the policy rate (repo rate) at a record low of 4%.

Click on the attachment to read the full report:

CARE Ratings Expectations from RBIs Monetary Policy August_2021.pdf
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