RBI commits to OMO calendar, leaves key policy rates and stance unchanged

The Reserve Bank of India (RBI) today took a step toward formalising its own version of quantitative easing, committing to support the bond market through secondary market purchases, starting with Rs 1 trillion in the first quarter. Though the central bank said this will be in addition to open market operations (OMOs), in essence, this is a calendar for OMOs, a long-standing demand from the bond market.
The six-member monetary policy committee also voted unanimously for a status quo on the benchmark rate “for as long as necessary to sustain growth on a durable basis and continue to mitigate the impact of Covid-19 on the economy, while ensuring that inflation remains within the target going forward.”