RBI keeping all options open due to uncertainty on the economic front
At the bi-monthly review meeting of the Monetary Policy Committee (MPC) last week, it was decided to keep the policy rates unchanged. This was already expected. The Reserve Bank of India's (RBI) Committee on Policy Rates has not made any change in the policy repo rate and has decided to maintain its moderate stance unless there is a need to support economic growth. There was no discussion about the gradual withdrawal of special incentives at the policy level. The committee also did not change its stance on the macroeconomic situation. But with the spread of the new form of the Covid-12 virus, Omicron, uncertainty has increased. According to the committee, India's economic growth rate is expected to be 7.5 per cent in the current financial year. Inflation is projected to average 4.5 per cent this year. According to the committee, inflation is expected to reach 7.5 per cent in the fourth quarter, but should come down to 5 per cent in the first six months of the next financial y