Status quo on policy rates likely

Mumbai Monetary Policy Committee (MPC) of RBI, which started its three-day meeting to review annual monetary policy on May 2, is likely to maintain status quo on policy rates, continue with an accommodative policy stance. The RBI will be reviewing the policy on June 04.

Shanti Ekambaram, Group President – Consumer Banking, Kotak Mahindra Bank says," In the current environment, the choices before the Monetary Policy Committee (MPC) may be limited. With the second phase of the pandemic impacting consumption and growth, the MPC will likely maintain status quo on policy rates, continue with an accommodative policy stance and ensure adequate liquidity in the system – all in an effort to stimulate growth. While it will keep one eye on inflation levels on the back of rising global commodity prices, it currently will focus on supporting economic growth." Experts are waiting for RBI's GDP growth forecast in the today's meeting.