The RBI’s latest monetary policy action, of maintaining status quo on benchmark interest rates, the policy stance, as well as the full-year GDP growth and inflation projections, stems largely from a wariness of the risks posed by the Omicron variant of the novel coronavirus. Announcing the bimonthly policy, Governor Shaktikanta Das observed that ‘headwinds from global developments’ were the main risk to the domestic outlook, which was now “somewhat clouded by the Omicron variant of COVID-19”. With the key drivers of demand in the economy — private investment and private consumption — still lacking meaningful momentum, the Monetary Policy Committee had opted to continue with its growth supportive ‘accommodative’ policy stance so as to enable a durable and broad-based recovery, he said. (Read More)
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