New Delhi: The Governor of the Reserve Bank of India (RBI) is announcing the results of the Monetary Policy Committee (MPC) meeting at 10 am today. The three-day meeting of the MPC began on Wednesday. It is expected that MPC covid-19 may decide to maintain the status quo in policy rates due to uncertainty arising out of the outbreak of the second wave of epidemic. The MPC is also expected to change interest rates even as inflation is expected to pick up.

RBI had not revised key interest rates in the last MPC meeting held in April. At present, the repo rate is at 4 per cent and the reverse repo rate is at 3.35 per cent. B.K. Govinda Rao, Chief Economic Advisor, Brickwork Ratings said that the data on better than expected GDP has brought some relief to the MPC on the growth front. However, restrictions like partial lockdown slipped in many parts of the country, leading to negative risks to growth, he added.

He said, there is a possibility that RBI will continue its liberal monetary policy stance and keep the repo rate at four per cent with a cautious approach. Dhruv Agarwal, group CEO of Housing.com, Makan.com and Proptiger.com, says the Reserve Bank can maintain its liberal stance without jeopardising its key target of containing inflation.

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