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RBI has been pragmatic on growth; ring-fenced the liquidity issue

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RBI commits to OMO calendar, leaves key policy rates and stance unchanged

Despite the surge in Covid-19 infections, the growth target also remained unchanged at 10.5 per cent for the fiscal, but inflation was tweaked upwards slightly

Topics
RBI monetary policy | RBI Policy | Reverse Repo Rate

Anup Roy  |  Mumbai 


The Reserve Bank of India (RBI) today took a step toward formalising its own version of quantitative easing, committing to support the bond market through secondary market purchases, starting with Rs 1 trillion in the first quarter.

Though the central bank said this will be in addition to open market operations (OMOs), in essence, this is a calendar for OMOs, a long-standing demand from the bond market. The six-member monetary policy committee also voted unanimously for a status quo on the benchmark rate “for as long as necessary to sustain growth on a durable basis and continue ...

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First Published: Wed, April 07 2021. 11:25 IST

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