RBI's Monetary Policy Review - Dovishness Continues: Motilal Oswal

A police officer walks past the Reserve Bank of India building in Mumbai. (Photographer: Kanishka Sonthalia/Bloomberg).

RBI's Monetary Policy Review - Dovishness Continues: Motilal Oswal

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Motilal Oswal Report

The Monetary Policy Committee resolution was in line with expectations, with the policy repo rate unchanged at 4%.

The reverse repo and Marginal Standing Facility rates were also kept unchanged at 3.35% and 4.25%, respectively.

Besides the decision on rates, all MPC members voted unanimously to continue with the accommodative stance for as long as necessary.

Although inflation forecasts were revised up only marginally to ~5.1% in FY22, growth forecasts were revised down by 1% to 9.5% (from 10.5% earlier) – on account of the increased spread of Covid-19 infections in rural areas and dented demand in urban areas.

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Motilal Oswal Ecowrap RBI MPC.pdf


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