New Delhi, February 5: The Reserve Bank of India (RBI) will announce its key decisions of the monetary policy committee (MPC) meet on Friday. This will be the first monetary policy decision after the Union Budget was presented on Monday.
Finance minister Nirmala Sitharaman in the Union budget 2021 proposed to borrow Rs 12 trillion for the next fiscal and an extra Rs 80,000 crore this fiscal. RBI Rules Out Printing More Money to Cover Fiscal Deficit.
Here's what to expect:
RBI is expected to retain the accommodative stance in 2021. According to a News 18 report, another factor to look out for is whether RBI will restore CRR to 4 percent from 3 percent on March 31 and whether higher liquidity would bother RBI's inflation outlook.
Monetary Policy at 10 am today:
Towards the end of last year, RBI bulletin said that as economic activities gather momentum and strive to get back to pre-Covid levels. RBI said that the Indian economy is reflating at a pace higher than most predictions.