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

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 to mitigate the impact