AMN / WEB DESK
The Reserve Bank of India’s (RBI’s) six-member monetary policy committee (MPC), headed by Governor Shaktikanta Das, kept the key lending rate — repo rate unchanged at 4 per cent for the eighth time in a row. Reverse repo rate remained unchanged at 3.5 per cent. The central bank retained FY22 GDP growth forecast at 9.5 per cent.
While announcing the Monetary Policy in Mumbai today, RBI Governor Shaktikanta Das said, it has been unanimously decided to keep the lending rates unchanged.
Repo rate remains unchanged at four per cent while reverse repo rate is maintained at 3.35 per cent. Repo rate is the rate at which the Central Bank lends short-term money to banks. Mr Das said, policy stance will stay accommodative as long as necessary to revive and sustain growth and mitigate the impact of COVID-19 pandemic while ensuring inflation remains within the target.
The RBI has also maintained FY-22 GDP growth target at 9.5 per cent. The Governor said, the Central Bank sees Q2 FY-22 GDP growth at 7.9 per cent compared to 7.3 per cent earlier. He added that growth impulses were strengthening and inflation trajectory may be shifting downwards in contrast to initial expectations.
Key highlights from RBI governor Shaktikanta Das’ address:
— RBI will maintain accomodative stance
— Repo rate, reverse repo rate maintained at 4% and 3.35% respectively
— RBI Stops G-SAP Operations
It will, however, continue to conduct open market operations as needed.
— RBI has stepped up the pace of variable rate reverse repo auctions.
— The RBI has maintained the FY22 GDP growth forecast at 9.5%.
— CPI inflation is projected at 5.3% for the current fiscal year.
— Internal Ombudsman for NBFCs