Monetary policy meet: RBI likely to focus on liquidity management

The RBI's 2021-22 growth forecast is likely to remain unchanged at 9.5 per cent year-on-year

In the upcoming monetary policy meeting on August 6, we expect the Reserve Bank of India (RBI) to maintain an accommodative monetary policy stance, citing the need to support the ongoing growth recovery amidst continued uncertainty and global financial market volatility.
 
But the forward guidance is likely to put more emphasis on pipeline inflation risks, compared to past policies. The RBI’s 2021-22 (FY22) growth forecast is likely to remain unchanged at 9.5 per cent year-on-year (YoY), even though there is a high probability of April-June real gross domestic product growth to surprise to the upside, as shown by its