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Motilal Oswal Report
As per expectations, the Monetary Policy Committee had kept the policy repo rate unchanged at 4% in its meeting on December 4, 2020.
The reverse repo and Marginal Standing Facility rates were also kept unchanged at 3.35% and 4.25%, respectively.
In addition to the decisions on the rates, all the members of the MPC voted unanimously to continue with the accommodative stance as long as necessary – at least during the current financial year and into the next financial year.
The inflation and growth projections, however, were revised significantly, as we had anticipated.
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