MPC may opt for cut in liquidity, no rate hike: BS monetary policy poll

The RBI accepts overnight excess liquidity from banks at 3.35 per cent, its reverse repo rate

Economists and bond market participants do not expect the monetary policy committee (MPC) to change its accommodative stance or the repo rate on October 8 but they will keenly look for hints on policy normalisation, starting with the removal of excess liquidity.

A Business Standard policy poll of 14 leading economists and bond market participants expects the status quo. But their prognosis about other policy outcomes varied widely.

 The repo rate is now at 4 per cent, while the reverse repo rate is at 3.35 per cent. The rates have remained at a record low because of the pandemic and the RBI