RBI MPC may keep status quo on rates, maintain ‘accommodative’ stance in Oct policy
RBI monetary policy committee is likely to keep status quo on both repo and reverse repo in Oct policy as high inflationary expectations in near term will leave limited scope for rate cuts now. ET NOW Poll expects status quo on rates, but RBI will maintain ‘accommodative’ stance. While the central bank has stated earlier that FY21 growth is seen to contract, they have refrained from sharing GDP growth projections. RBI is likely to share GDP projections for FY21 along with inflation updates and this will provide more clarity to market participants interms of where the economy is headed.