MPC minutes: Omicron may derail ongoing demand recovery, says RBI Governor

'Need to remain vigilant to incipient cost-push pressures to inflation as well as to uncertainty imparted by Omicron. Its implication for inflation, going forward, are two-fold,' says Shaktikanta Das

RBI Governor Shaktikanta Das said that Indian economy is facing several headwinds from global factors and that Omicron may derail ongoing demand recovery, showed MPC minutes released by the central bank on Wednesday.

The Monetary Policy Committee (MPC) on December 8 had unanimously voted for status quo on policy rates for the ninth consecutive time. The meeting was conducted soon after the latest Omicron variant of coronavirus started spreading across the globe and most members said they would prefer to wait and see how the situation unfolds before deciding on the future course of monetary policy.

As per the minutes, Das said