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RBI monetary policy announcements: Highlights and key takeaways

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RBI's monetary and Centre's fiscal policy are moving hand-in-glove

RBI has done exceptionally well in managing government's extended borrowing this year when fiscal deficit has shot-up to 9.5 per cent of GDP

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RBI monetary policy | RBI Policy | Reverse Repo Rate

Sameer Narang  |  Mumbai 


Coming on the back of a historic Union Budget, Reserve Bank of India's (RBI) monetary policy is complementary to the fiscal policy. While policy rates have been kept unchanged, RBI has given forward guidance that it will continue to provide ample liquidity into the next financial year, as was the case earlier.

This is essential to see through elevated borrowing of Rs 12 trillion by Centre and Rs 10 trillion by states in the next year. RBI has done exceptionally well in managing government's extended borrowing this year when fiscal deficit has shot-up to 9.5 per cent of GDP. ...

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First Published: Fri, February 05 2021. 13:39 IST

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