Monetary Policy: GDP growth projections may be left unchanged amid Covid-19

It is likely to keep policy rates on hold, maintain its accommodative stance going into FY22, and sound dovish amid rising Covid-19 cases

The recent rise in Covid-19 cases in India is a stark reminder of the uncertain times we live in. It also underlines the message that central banks have been trying to convey to the markets, i.e. policy needs to be shaped by actual outcomes rather than forecasts.
 
To quote Fed chair Powell from his mid-March speech “The fundamental change in, in our framework is that we, we’re not going to act pre-emptively based on forecasts for the most part. And we’re going to wait to see actual data. And I think it will take people time to, to adjust