RBI policy: No explicit time frame for continuation of accommodative stance

The monetary policy stance is expected to remain accommodative for most of 2021, until a dramatic improvement in vaccine coverage quells uncertainty regarding the growth outlook

With restrictions and uncertainty continuing amidst the second wave of Covid-19, the Monetary Policy Committee (MPC) has predictably maintained status quo on the policy rates and stance, while tweaking its growth-inflation forecasts.

The Committee has kept the repo rate unchanged at 4 per cent in its second policy review for FY22, in line with the primary mandate of ensuring that the CPI inflation remains within a band of 2-6 per cent, while supporting growth. It has also decided to maintain the accommodative stance, for as long as necessary to durably revive and sustain growth and mitigate the economic impact of the