Status quo policy likely with focus on growth

An OMO calendar will make bond dealers happy but a disinvestment or privatisation calendar by the government will be a more potent weapon to manage yield and push growth

Topics
Indian Economy | monetary policy committee

Tamal Bandyopadhyay 

Tamal Bandyopadhyay

Five wise men and a wise woman — the Monetary Policy Committee (MPC) —will meet this week to decide on policy rates in Asia’s third-largest economy. This is the fourth meeting of the Indian central bank’s new rate-setting body, which was reconstituted in October last year, and the first in fiscal year 2021-22.

Ahead of the meeting, the government announced its decision to keep the “flexible” inflation target of the monetary policy framework unchanged at 4 per cent with a two percentage points band on either side for the next five years, till 2025-26. For ...

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First Published: Sun, April 04 2021. 23:43 IST
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