Monetary policy: All eyes on RBI for orderly evolution of yields

The Monetary Policy Committee (MPC) in its first meeting for the new fiscal year is faced with a different set of challenges it needs to address, as it looks to calibrate the monetary levers to keep inflation anchored to the recently renewed target of 4 per cent.
 

Overall policy focus will remain on supporting growth through low and stable interest rates and abundant liquidity. With the country undergoing a second wave of Covid-19 pandemic, economic activity, which otherwise has been improving steadily, would be affected as movement restrictions are reimposed. Moreover, with a real GDP de-growth in the previous year,