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.
Watch out for Monetary Policy statement by RBI Governor @DasShaktikanta at 10:00 am on February 05, 2021— ReserveBankOfIndia (@RBI) February 4, 2021
Post policy press conference telecast at 12:00 noon on the same day
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.
"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.
With PTI inputs