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Covid’s 2nd wave could hamper recovery: RBI

RBI Governor Shaktikanta Das has said the risk of a second wave of Covid could put sand in the wheels of the nascent recovery while his deputy MD Patra opined that it might take years to regain the output lost on account of the pandemic.

These views were expressed by them during the meeting of the newly constituted Monetary Policy Committee (MPC) held from October 7 to 9.

The newly appointed independent member of the rate-setting panel Shashanka Bhide said uncertainties relating to Covid pandemic will impact growth and inflation scenarios in the next two to three quarters.

Das also said the decision to cut benchmark repo rate would depend upon 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.