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Home / Business / Inflation cloud over RBI bi-monthly monetary policy rate meet

Inflation cloud over RBI bi-monthly monetary policy rate meet

Experts are of the view that the central bank will maintain the status quo on policy rates for the eighth time in a row
The decision of the six-member Monetary Policy Committee (MPC) would be announced on Friday by RBI governor Shaktikanta Das.

PTI   |   Mumbai   |   Published 07.10.21, 01:52 AM

The RBI’s rate-setting panel started its three-day deliberations on the next bi-monthly monetary policy on Wednesday amid rising global commodity prices and the need to contain inflation at home.

The decision of the six-member Monetary Policy Committee (MPC) would be announced on Friday by RBI governor Shaktikanta Das.

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Experts are of the view that the central bank will maintain the status quo on policy rates for the eighth time in a row. The policy repo rate or the short-term lending rate is at 4 per cent, and the reverse repo rate is 3.35 per cent.

Ranen Banerjee, leader (public finance and economics) at PwC India, said the latest statements by the US Fed Chair on possible actions if inflation does not wear off by the first half of 2022 is a clear commencement of chatter around rate action after the clarity on taper timing.

“This will have a bearing on the stance of the MPC as it will also be worried on the inflation front given that oil, natural gas and coal prices show no signs of abetting and rather have an upward bias,” he said. 



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