Governor Shaktikanta Das said the six-member Monetary Policy Committee held the benchmark repurchase rate at 4% — a decision predicted by all 30 economists surveyed by Bloomberg. The monetary panel signaled readiness to act to support growth, by retaining its accommodative stance for as long as necessary.
Policy makers had been expected to keep policy accommodative amid continued risks from the Covid-19 crisis. While a nascent recovery in Asia’s third-largest economy has been nudging inflation higher, daily new virus cases hit a record of more than 100,000 this week, pushing some states to impose movement curbs that could hit demand in an economy dependent on consumption.
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