Omicron scare may delay RBI plan to normalise accommodative monetary stance

The concern over the new Covid-19 variant Omicron may delay the Reserve Bank of India’s plan to normalise the extreme accommodative monetary stance, which could result in postponing a hike in the reverse repo rate to the February policy, if the scare turns out to be temporary.

The six-member monetary policy committee of the RBI will meet from December 6-8 to review the policy; the decision will be announced on the last day.

The GDP growth numbers for the second quarter that were announced earlier this week turned out to be higher than the central bank’s projection, made in the