MPC meet: RBI will reiterate the need for right policy mix, says expert

As India's early-stage recovery has been derailed by the second wave, the MPC will continue to focus on growth and maintain the status quo on policy rates and liquidity stance

Since the RBI’s first Monetary Policy Committee (MPC) meeting for FY22 in April, the global and domestic economic scenes have changed significantly. The outlook for major economies, especially the US and China, has brightened and commodity prices have escalated on demand optimism. There is a growing concern this may make their central banks rethink their accommodative policy stance, sooner than later.
 
On the contrary, the domestic economic scene has worsened due to the second wave of Covid-19. Many high-frequency indicators reflecting overall investment and consumption sentiments have shown significant deterioration in April-May 2021. On the other hand, WPI inflation