The Monetary Policy Committee of the Reserve Bank of India will meet on December 6-8 to review the fiscal blueprint. The central bank has so far been maintaining an accommodative stance with rates kept at the lowest level to help the COVID-battered economy rebound and set off on a growth trajectory. This time, the panel is likely to narrow down the policy corridor between repo and reverse repo by increasing the reverse repo rate, believes Ashutosh Tiwari, Managing Director for Equities at Equirus. “The typical corridor gap is 25 basis points but it is now 65 bps as the RBI had widened it during COVID,” he says in an interview with Moneycontrol. In the previous policy, the governor had signalled that the fixed rate reverse repo lending is intended to be maintained at Rs 2-3 trillion which is the current level and the rest of the liquidity absorbed through Variable Reverse Repo (VRRR). “We expect RBI to continue VRRR and bring the reverse repo to 3.75 percent. Citing the new …