The MPC decided to maintain policy rate at 9.75%. This reflected view that domestic demand & underlying current acc continue to moderate to a sustainable pace, while outlook for inflation has improved following govt’s relief pkg announced last week.
Looking ahead, the MPC noted that current real interest rates on a forward-looking basis are appropriate. However, the Russia-Ukraine conflict has introduced a high degree of uncertainty in the outlook for international commodity prices and global financial conditions.
Since the Russia-Ukraine situation remains fluid, the MPC indicated it is prepared to meet earlier than the next scheduled MPC meeting in late April, if necessary, to take any needed timely and calibrated action to safeguard external and price stability.