Second Wave Of COVID-19 Could Hamper Nascent Recovery

RBI Governor Shaktikanta Das has said the risk of a second wave of COVID-19 could put sand in the nascent recovery wheels. His deputy, M D Patra, opined that it might take years to regain the output lost on account of the pandemic. The views were expressed by them during a meeting of the newly constituted Monetary Policy Committee (MPC) held from October 7 to 9. A newly appointed independent member of rate-setting panel, Shashanka Bhide, said uncertainties relating to the COVID-19 pandemic will impact growth and inflation scenarios in the next two to three quarters. Das also said the decision to cut the benchmark repo rate would depend on the evolving situation with regard to inflation, which is currently above the tolerance level of the central bank, according to the minutes of the meeting released by RBI on Friday. “I recognise that there exists space for future rate cuts if...