A monetary policy of continuity with change

This time, RBI's rate-setting body is not only talking about sustaining growth but also reviving it

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The RBI has also cut its growth projection to 9.5% — 18.5% in the first quarter; 7.9% in second; 7.2% in third; and 6.6% in the fourth

Tamal Bandyopadhyay New Delhi

5 min read Last Updated : Jun 04 2021 | 9:38 PM IST

The no-action, status-quo monetary policy of the Reserve Bank of India (RBI) signals continuity with change.

Let’s take a close look at what has been continuing and what has changed.

One, the accommodative stance of the monetary policy continues.

The Monetary Policy Committee (MPC), RBI’s rate-setting body, has unanimously decided to continue with the accommodative stance as long as necessary, while the key policy rates remain unchanged. It has also stuck to its data-based guidance as opposed to the time-based guidance that it was giving till February.

However, one word has made a big change. This time it is saying

Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

Topics : Reserve Bank of India Coronavirus Inflation monetary policy committee monetary policy Indian Economy Shaktikanta Das retail inflation Wholesale food inflation GDP growth GDP Crude Oil Price Oil Prices Fuel prices

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