RBI to announce its last bi-monthly monetary policy review of FY 2021-22

The Reserve bank of India will announce its last bi-monthly monetary policy review of the financial year 2021-22 today. RBI Governor Shaktikanta Das will announce Monetary policy at 10 this morning. This policy review is important as it is the first policy review after the announcement of Union Budget 2022-2023.

The Reserve Bank's rate-setting panel began its three-day deliberations to decide the monetary policy in the backdrop of Budget 2022-23, inflationary concerns, and evolving geopolitical situation.

The three-day meeting of the Monetary Policy Committee was scheduled to begin on Monday. But it was rescheduled and began on Tuesday due to the public holiday declared by the Maharashtra Government on Monday to mourn the death of legendary singer Lata Mangeshkar.

It is widely anticipated that the six-member Monetary Policy Committee (MPC) headed by Reserve Bank Governor Shaktikanta Das is likely to keep key policy rates including repo and reverse repo rates unchanged in its monetary policy review to be announced today. But some experts are expecting the MPC to change its stance from accommodative to neutral and tinker with the reverse-repo rate as part of the liquidity normalization process.

If the RBI maintains the status quo in policy rates today it would be the tenth consecutive time since the rate remains unchanged. The central bank had last revised the policy rates on May 22, 2020, in an off-policy cycle to perk up demand by cutting the interest rate to a historic low.