Care Ratings: Expectations From RBI’s Monetary Policy
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Care Ratings Research Report
The Monetary Policy Committee is to present its fourth bi-monthly monetary policy for the current financial year later this week (December 04, 2020). This is the second policy meet under the newly formed MPC.
The MPC is expected to factor in its decision making the nascent signs of improvement in the domestic economy while also recognising the fragile nature of this recovery and the underlying downside risks.
We expect the Reserve Bank of India to retain the policy rate at 4% and continue with the accommodative policy stance despite the buildup in inflationary pressures.
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