RBI likely to maintain status quo on rates

NEW DELHI: The Reserve Bank is likely to maintain a status quo on benchmark interest rate in its next monetary policy meet outcome to be announced on Februar y 5, four days af ter the presentation of the Union Budget 2021-22.

Experts are of the view that the RBI will refrain from tinkering with the interest rates and keep the monetary stance accommodative at the policy review though it will take guidance from the budget to be unveiled by Finance Minister Nirmala Sitharaman in the Lok Sabha on Februar y 1.

"We expect the MPC (Monetary Policy Committee) to continue the pause. The fall in inflation rate was mainly due to fall in food prices.

The core inflation rate has not come down. Excess liquidity needs to be watched.