The Reserve Bank is likely to maintain status quo on interest rate and watch the developing macroeconomic situation for some more time before taking any decisive action on monetary policy. This likely scenario comes amid fears of a third wave of coronavirus pandemic and hardening of retail inflation.
The RBI is scheduled to announce its bi-monthly monetary policy review on August 6 at the end of the three-day meeting — August 4-6 — of the Monetary Policy Committee (MPC).
The RBI Governor-headed six-member MPC decides on the key policy rates. The panel had left the rates unchanged last time citing concerns on inflation.
“Higher commodity prices and rising global prices post the robust recovery in a few industrial countries will have implications on production costs.
