Some economists think the MPC should now get out of withdrawal of accommodation and into neutral gear. However, that may only spark hopes of an interest rate cut — something policymakers will want to avoid.
On Thursday, the Reserve Bank of India (RBI) surprised the market with a policy statement that has a lower gross domestic product (GDP) at 7.8 per cent and an inflation forecast at 4.5 per cent for FY23.
The RBI MPC is likely to keep the repo rate unchanged and maintain an accommodative stance over the near term, says Rakshit.
The Monetary Policy Committee (MPC) is set to meet for two days on December 2, 2020. With inflation passing past the 6 percent mark what will be the MPC’s next move. Let find out in this edition of 3-Point Analysis.
Today's statement didn't advance much our collective assessment of how the Fed sees its policy experiment evolve from here — particularly with respect to future benefits for the economy, longer-term collateral damage and unintended consequences.