Although the pandemic is unlikely to end immediately, its impact on economic activity would slowly wane
MPC should not ignore inflation risks
In a Q&A, Goyal, a member of RBI's Monetary Policy Committee, says reducing excess liquidity is at RBI's discretion and MPC members can only offer advice
The RBI governor defended his protracted rate pause and lengthy accommodative stance as a compulsion brought by the pandemic
'There is no blanket ban on opening of current accounts', said M Rajeshwar Rao
While it termed current inflation as transitory, MPC also expects it to edge up to near-6% levels towards 2021-22 end, highlighting stickiness of inflation in uneven economic recovery
RBI extended the on-tap targeted long term repo operations (TLTRO) scheme till December 31
Headed by the RBI Governor, the six-member MPC also includes three external members.
Loss in momentum of activity could be temporary and restricted to the first quarter of FY22, RBI governor Shaktikanta Das is quoted to have said in minutes of MPC meetings
Structurally, it's a well-crafted policy. But like in cricket and politics, things can change dramatically for a central bank in a very short time
Will help those who can't ensure minimum balance
RBI should not undermine the price and financial stability objectives
Overall RBI monetary policy was on expected lines and the policy statement highlighted its commitment to do whatever it takes to ensure financial stability
The disconcertingly sharp new wave of Covid-19 cases has reignited uncertainty regarding the economic outlook in the immediate term
Reversal of interest rate cut should have been avoided
Govt seeks RBI's view on tweaks to CPI basket and if old weightings need to be changed
The six-member MPC kept interest rates on hold, but said it will keep its stance accommodative to support the government's huge borrowing programme
Working papers don't necessarily reflect RBI's views, but invariably end up doing just that. This paper, by H K Behera and Michael Patra, could be one such
The path ahead also remains uncertain because it is closely tied to the path of the pandemic curve
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