RBI’s Monetary Policy Committee meets next week amid urgency to revive growth

PTI, Aug 2, 2020, 5:50 PM IST

New Delhi: The Reserve Bank’s rate-setting Monetary Policy Committee (MPC) will meet next week to decide on the policy stance amid the urgency to revive the coronavirus-hit economy and increased demand for one-time loan restructuring by industry chambers.

Experts are, however, divided over the possibility of another rate cut by the RBI in its forthcoming policy arguing that one-time loan restructuring was more essential at this juncture to tide over the COVID-19 situation.

The MPC, headed by RBI Governor, is scheduled to meet for three days beginning August 4 and announce its decision on August 6.

The central bank has been taking steps proactively to limit the damage to the economy caused by the COVID-19 pandemic and subsequent lockdowns.

It is to be noted here that a fast-changing macroeconomic environment and the deteriorating outlook for growth necessitated “off-cycle meetings” of the MPC first in March and then again in May 2020.