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RBI Governor Shaktikanta Das to announce outcome of MPC meet on Feb 5

Three-day meet of six-member RBI committee headed by Das started on February 3. MPC may keep key policy rates unchanged, while ensuring availability of adequate liquidity needed to spur investment in infrastructure sector

twitter-logoBusinessToday.In | February 5, 2021 | Updated 15:54 IST
RBI Governor Shaktikanta Das to announce outcome of MPC meet on Feb 5
RBI Governor Shaktikanta Das

Reserve Bank of India (RBI) Governor Shaktikanta Das will announce a by-monthly monetary policy announcement at 10 AM on February 5, the central bank said via a tweet on Thursday.

The three-day meet of the six-member committee of the RBI, which is headed by Das, started on February 3. Experts say it'll be interesting to see what policy changes the RBI announces days after the Union Budget 2021.

It is widely expected the MPC may keep the key policy rates unchanged. The MPC will, however, ensure the availability of adequate liquidity that will be needed to spur investment in the infrastructure sector.

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"We expect the MPC to continue the pause. The fall in inflation rate was mainly due to fall in food prices. The core inflation rate has not come down. Excess liquidity needs to be watched. The vaccine availability is not going to impact macro economy immediately," M Govinda Rao, Chief Economic Advisor, Brickwork Ratings told news agency PTI.

The MPC kept the key benchmark rate unchanged in its last three review announcements. The current repo rate -- rate at which RBI lends to banks -- is at a record low of 4 per cent. The reverse repo rate -- rate for funds parked by banks with RBI -- is 3.35 per cent.

The RBI had last revised its policy rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting interest rate to a historic low. The central bank has cut policy rates by 115 basis points since February 2020.

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With PTI inputs

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