Liquidity support, bond yield management: Key takeaways from RBI Policy

RBI monetary policy 2021: The recent surge in Covid-19 infections, however, imparts greater uncertainty to the outlook, RBI governor Shaktikanta Das said today

Given the rise in the spread of the coronavirus (Covid-19) infection and imposition of fresh localised lockdowns, the Reserve Bank of India’s (RBI’s) monetary policy committee (MPC) on Wednesday decided to leave the key repo-rate unchanged at 4 per cent. It also maintained the policy stance as ‘accommodative’ to keep the liquidity taps running in the economy.
 

“The recent surge in infections, however, imparts greater uncertainty to the outlook,” RBI governor Shaktikanta Das said today, setting the stage for the financial year of 2021-22 (FY22). April policy was the first bi-monthly MPC meeting of the new fiscal year. “Localised and