Reserve Bank of India (RBI) held its policy rate at 4%. That has been the case now in three consecutive policies. High inflation constrains the central bank from reducing policy rate any further, unlike other Emerging Markets
RBI Monetary Policy HIGHLIGHTS: Reserve Bank of India (RBI) in its sixth bi-monthly monetary policy committee (MPC) meeting voted unanimously to maintain the repo rate at 4% and the reverse repo rate at 3.35%.
For FY21, we expect GDP to contract by 11.5%, with further risks on the downside depending on the evolution of further Covid infections and the limited room available with the government for any aggressive fiscal stimulus.