RBI Monetary Policy, statement by Governor on MPC at 10 am today

Shaktikanta Das, Governor of Reserve Bank of India (RBI) will today announce decisions on key rates from the central bank’s Monetary Policy Committee (MPC) after the panel concludes its three-day meeting on June 4. Experts believe that the central bank will keep the policy rates unchanged and maintain accomodative stance on account of uncertainty over the impact of the second wave of COVID-19 and fears over inflation. The Reserve Bank of India is India's central bank and regulatory body under the jurisdiction of Ministry of Finance, Government of India. It is responsible for the issue and supply of the Indian rupee and the regulation of the Indian banking system.

The economic outlook remains uncertain in light of the continuing pandemic. We expect the monetary policy stance to remain accommodative for a large part of 2021, until the vaccine coverage improves dramatically,” said Aditi Nayar, chief economist at ICRA. “The RBI Governor Shaktikanta Das faces a tough task this time, with a confluence of challenging parameters emerging in the economy on account of the second wave of covid and lurking uncertainties. The present double-digit wholesale price inflation is going to lead to a rapid jumping of retail inflation too, with a lag effect. This could prompt RBI to shift to a hawkish stance. However, in revival and sustenance, a bold approach is expected and desired from RBI with no change in repo rate,” said Jyoti Prakash Gadia, managing director, Resurgent India.