The Reserve Bank of India is likely to maintain its gradual withdrawal from its ultra-accommodative posture.

The Reserve Bank of India is likely to maintain its gradual withdrawal from its ultra-accommodative posture.

Facing the risk presented by the new Covid variation — Omicron — experts predict that the Reserve Bank of India (RBI) would stick to its objective of gradually exiting ultra-accommodative monetary policy settings.

Retail prices are expected to stay within the MPC's target range of 4 to 6% in the near term. By maintaining an accommodation pause in policy rates in December, the Monetary Policy Committee will have more time to analyse the intermediate consequences of Omicron. On December 8, the MPC is expected to release the bimonthly policy.