The RBI policy is largely along expected lines and its accommodative stance is reassuring as the growth is still at a nascent stage and COVID remains a threat, say analysts
Though the RBI says growth remains its focus during these uncertain times, inflation, too, seems to playing on the minds of MPC members, say analysts
According to CARE Ratings, the inflation is expected to be stable with increased hopes of better than expected monsoons. "No change in RBI policy rates is expected in August", says the rating agency.
Several banks including Indian Overseas Bank (IOB), Punjab & Sind Bank and Corporation Bank have raised lending rate by up to 50 basis points in line with other lenders.
The Reserve Bank of India is likely to hike interest rates in its forthcoming mid-quarter review of the policy on March 17.