Indian central bank’s rate-setting body, the Monetary Policy Committee (MPC), will hold its second meeting of the current fiscal year this week. At its first meeting in April, the six-member MPC unanimously kept the policy rates unchanged — at its historic low. It also continued with its accommodative stance with a subtle change.
Till the last MPC meeting of fiscal year 2021, held in February, the Reserve Bank of India (RBI) had been giving a long forward guidance — to continue with its accommodative stance as long as necessary. In April, it moved away from time-based guidance to data-based one —
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