April 7, 2021
As we witness the second wave of Covid-19 and its implications on the economic growth and inflation, the decision to hold the accommodative stance and keep repo rate at 4% was anticipated. The country’s economic recovery is still fragile and as the external demand continues to be uncertain, RBI’s continuous support, proactive and balanced approach is what is needed to ensure liquidity. A strong vaccination and distribution programme will gradually churn the wheels of business growth and economic revival.