Continuing to lend a calming hand, RBI has its job cut out from here on

With inflation pressures likely to remain intact, the other critical input for the RBI will be the global monetary policy conditions, especially in the US

The RBI’s monetary policy was on expected lines – not merely with respect to the headline policy rates, but also the enablers that the Reserve Bank of India (RBI) has consistently tried to build as a response to the pandemic – that of providing adequate liquidity, managing the government security yields and push credit to segments that are starved of funds. The RBI finds itself in a bit of a challenging situation now whereby the second COVID-19 wave has worsened the growth prospects and once again truncated the recovery process that was evolving during Q3 and Q4 of FY21. However,