What are you expecting from the RBI policy?
Things have kind of worsened from the monetary standpoint since the last February meeting and we are still not out of the woods as far as corona is concerned. There are a whole lot of uncertainties and I do not think there is a compelling reason for RBI to change its policy stand or increase the interest rates at this stage. The MPC will prefer to wait and watch and not tinker with the rates at this stage.
The rise of interest rates, if at all it comes, is still 6 to 10 months away. It is not going to happen now. The RBI governor has indicated that they will not be in a hurry to increase the interest rates or tighten the purse strings. That is a stand which central bank governors across the world have taken and they have articulated this very clearly to ensure that there is no taper tantrum like what we had witnessed last time round when the central banks were pumping liquidity and there was a huge fear in the market that they will star