Markets' expectations from the RBI in its August policy review

The outcome of the Reserve Bank of India's third bi-monthly monetary policy meeting will be the key trigger for the equity markets today. As focus remains more on fixing a fickle economy than on controlling stubborn price pressures, the Street is factoring-in a status quo on repo rate and 'accommodative' policy stance. However, the central bank's commentary on growth outlook, inflation projection, and liquidity measures will sway the markets.

India's Covid-19 vaccination--key for MPC members to be confident about sustainable growth--has been slow due to production glitches. Given this, the market wants to know the central bank's thinking about the economy in the coronavirus pandemic. 

Let's quickly go to Harshad Patil, executive vice-president and chief investment officer at Tata AIA Life to understand what the markets expect from the central bank and the road ahead for the debt markets