RBI Policy

The Monetary Policy Committee (MPC) came out with their bi-monthly policy statement today. Some of the key announcements are as follows:

  • The MPC members unanimously voted for keeping the policy rates unchanged
  • The MPC also unanimously decided to continue with an accommodative stance as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of COVID-19 on the economy, while ensuring that inflation remained within the target going forward



Equity Market Review

Indian equities continued their uptrend as Nifty closed at an all-time high of 15,583 (as of 31 May) as investors looked beyond the new cases peak. Focus likely remained on medium-term vaccination outlook, in-line earnings season and lifting of activity constraints. Along with declining cases, assurances from global central banks on liquidity and firmer global equity markets also helped broaden investor sentiment.



Debt Market Review

Benchmark 10-year yield closed almost flat at 6.02%, down by 01 bp from its previous close of 6.03%. The Reserve Bank of India's kept the benchmark interest rate unchanged. The repo rate will continue at 4% and the reverse repo rate at 3.35%. With this, the repo rate has remained unchanged for a sixth consecutive time.




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