Supporting growth

Govt action will be more important than monetary policy

The outcome of the bi-monthly meeting of the Monetary Policy Committee (MPC) was on expected lines. The rate-setting committee of the Reserve Bank of India (RBI) on Wednesday decided to leave the policy repo rate unchanged and maintain an accommodative stance as long as necessary to support economic growth. The steps required to unwind excess policy accommodation at this stage are anyway outside the purview of the MPC. The MPC’s assessment of the macroeconomic situation also remains broadly unchanged, though uncertainty has increased with the discovery of a new variant of Covid-19. It expects the Indian economy to grow at