InvestorQ : What were the highlights of the MPC minutes announced on Thursday by the RBI?
Riya Dwivedi made post

What were the highlights of the MPC minutes announced on Thursday by the RBI?

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shrinidhi Rajan answered.
3 weeks ago
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The minutes of the Monetary Policy Committee or MPC conducted between 05 April and 07 April were released on 22 April. The MPC minutes have highlighted the headwinds created by rising COVID cases, falling growth impetus and rising inflation. It was evident that the six members of the MPC were unanimous about holding repo rates at 4% and maintaining the monetary stance as accommodative.

While there was consensus on the need to maintain rates low and liquidity adequate, the members also underlined that any guidance on rates and liquidity going ahead should be should be data-driven only. RBI should refrain from giving time-bound guarantees of policy trajectory. Supply-side driven inflation was highlighted as a major risk by all participants but the RBI governor preferred to stand by the FIT framework of 2%-6% inflation in long term.

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