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RBI Monetary Policy Highlights: RBI Keeps Repo Rate Unchanged

Here are the key highlights of what Governor Shaktikanta Das said:

Photo Credit : Reuters


Amid the economic crisis, Reserve Bank of India Governor Shaktikanta Das on Friday during the Monetary Policy Committee (MPC) review meeting said that the central bank's MPC has left the repo rate unchanged at 4 per cent and reverse repo rate at 3.35 per cent.

In a press statement, RBI said, "Based on an assessment of the evolving domestic and global macroeconomic and financial conditions and the outlook, the MPC voted unanimously to keep the policy repo rate unchanged at 4 per cent. The MPC also decided on a 5 to 1 majority to continue with the accommodative stance as long as necessary to revive and 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. The marginal standing facility (MSF) rate and the bank rate remain unchanged at 4.25 per cent. The reverse repo rate also remains unchanged at 3.35 per cent.”

Here are the key highlights of what Governor Shaktikanta Das said:

-The Reserve Bank of India keeps the repo rate unchanged at 4 per cent to maintain an accommodative stance. 

-The Reserve Bank of India is going to keep the reverse repo rate at 3.35 per cent.

-Governor Shaktikanta Das said that the RBI is planning to focus on development and address trouble in the economy. Additionally, economic activities are normalising. Meanwhile, consumption, investment, and external demand are in the direction of regaining traction. 

-He also said that after the deadly second wave of COVID-19, Indian economy is recovering and economic activity is going to pick up on vaccination. 

-There is an urgent requirement to restore supply-demand balance in the economy and inflationary pressure transitory. 

-The Reserve Bank of India retains Gross Domestic Product (GDP) growth target at 9.5 per cent in financial year 22. 

-The Consumer Price Index (CPI) inflation is seen at 5.7 per cent in 2020-21, to fall to 5.1 per cent in April-June 2022. 

-The rate-setting panel the Monetary Policy Committee started its three-day considerations on Wednesday to conclude the bi-monthly monetary policy. The RBI had kept key interest rates unchanged at the last MPC meeting held in April, said Das.

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