Reserve Bank of India (RBI) governor Shaktikanta Das on Friday will announce the August bi-monthly monetary policy statement at 10 am. The three-day monetary policy committee (MPC) meeting has started on August 4 and the panel will announce its decision on August 6. Considering the hardening inflation and looming Covid-19 third wave, experts believed that the rate setting committee will keep the interest rates and policy stance unchanged. The RBI Monetary Policy Committee kept the lending rates unchanged for the last six times. The central bank of India is also likely to keep the policy stance unchanged at “accomodative”. “While the expectation is for a status quo policy, in terms of interest rates and stance, what will be important to gauge is the Monetary Policy Committee’s assessment on the economy and hence, the path forward from here on. Among a host of factors, it is the durability and sustainability of India’s growth curve, in addition to inflation, that will drive its decision making,” said Shanti Ekambaram, Group President, Consumer Banking, Kotak Mahindra Bank Ltd.
“In Today’s RBI MPC decision, there will be no change in repo and reverse repo rates amid fear of the third Covid-19 wave. RBI is likely to watch the developing macroeconomic situation for some more time before taking any decisive action on monetary policy,” said Heena Naik, research analyst, Currency, Angel Broking Ltd.