RBI monetary policy: Rates on hold amid uneasiness on inflation

Despite the unpresented stress and uncertainty in the economic outlook, the monetary policy committee (MPC) unanimously kept the policy rates unchanged in its August 2020 review, deferring to its primary mandate of ensuring that the Consumer Price Index (CPI) inflation remains within a band of 2-6 per cent. This target was breached mildly in June 2020, while the MPC indicated it will treat the imputed data for the lockdown months of April-May 2020 as a break in the series. The committee highlighted that inflation risks emanate from supply chain disruptions, high vegetable prices, increas.....

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