The Reserve Bank of India’s (RBI) bi-monthly monetary policy review that began scheduled from June 2, is likely to see the announcement on the Monetary Policy Committee’s (MPC) decisions on June 4. 4 with Governor Shaktikanta Das expected to announce the updates.
According to PTI, the central bank is likely to keep the Repo rate unchanged given COVID-19 uncertainty and fears over inflation. Repo rate (lending rate) is likely to continue at 4 percent and reverse repo rate (RBI’s borrowing rate) at 3.35 percent.
The panel had also left the rates unchanged during the last MPC meet in April 2021.
This would be the sixth consecutive time the RBI maintains status quo if rates remain unchanged on June 4.
Sharing his views on the expectations from the policy review, Amit Gupta, Deputy CFO, Arka Fincap Limited (Formerly known as Kirloskar Capital Limited) said, “With the ongoing impact of the second wave of COVID 19 and keeping a check on inflation levels, it is expected that the MPC will maintain a status quo on rates along with continuing an accommodative stance to ensure economic growth. Further, it is expected that RBI will continue with Open Market Operations (OMO), GSAP and other liquidity measures to ensure sufficient money supply and maintain interest rates in the economy.”