Analysts Decode What RBI Monetary Policy Means For Markets, Economy, Bond Yields

The RBI on Friday held the repo rate, its key lending rate, at four per centand kept the reverse repo rate, the borrowing rate, unchanged at 3.35 per cent.

The Reserve Bank of India (RBI) kept interest rates steady at record lows and reiterated its commitment to keeping policy accommodative as a second wave of COVID-19 infections threatens to derail the country's economic recovery. The RBI on Friday held the repo rate, its key lending rate, at four per cent and kept the reverse repo rate, the borrowing rate, unchanged at 3.35 per cent. (Also Read: RBI Monetary Policy Highlights: Lending Rates Unchanged, Growth Projected At 9.5% )In a Reuters poll, all 51 economists surveyed had expected the RBI's monetary policy committee (MPC) to leave rates unchanged as Asia's third-largest economy grapples with various state lockdowns. Gaurav Garg, Head Of Research, Capitalvia Global Research, Mumbai "The cause of concern for investors now is inflation, which seems to outweigh the benefits of cheaper credit, as inflation and the pandemic are expected to impact the real income and purchasing power of end-users, thereby, impacting the Q1 numbers of FY 2021-2022 for corporate India."