RBI MPC meeting begins, whether there is scope for further reduction in interest rates, know from experts
The meeting of RBI’s Monetary Policy Committee (MPC) started on Monday. The meeting, which is being chaired by RBI Governor Shaktikanta Das, will last for three days. The monetary policy of the central bank will be reviewed in this meeting. This meeting is being held at a time when there has been a sudden huge increase in the cases of Kovid-19 in the country. Also, recently the central government has once again asked the RBI to limit inflation to between 2-6 per cent for the next five years. The decision of the MPC will be announced by the RBI on April 7.
Experts believe that RBI will not make any changes in policy rates in the first bi-monthly meeting of the new financial year. It is also being speculated that the RBI may keep the monetary stance liberal.
Economists at US brokerage company Bofa Securities have said that the central bank will make a decision on price stability, growth and financial stability for the time being. He said, “RBI MPC will keep the policy rates unchanged once on Wednesday.”
The statement issued by Brickworks Ratings said, “In its forthcoming meeting of the RBI Monetary Policy Committee due to increase in cases of coronavirus and renewed restrictions to prevent the spread of the virus to large parts of the country may keep the policy stance liberal. ”
The rating agency has said that the central bank will keep the policy rates unchanged. CARE Ratings has stated that the policy rate will be fixed keeping in mind the steps that promote economic growth, contain inflation and other aspects.