RBI Monetary Policy 2021 announcements: The six-member Monetary Policy Committee (MPC) headed by Federal Reserve Bank of India (RBI) Governor Shaktikanta Das kept the repo rate unchanged at 4 per cent, while the reverse repo rate also was kept unchanged at 3.35 per cent. Here’s what the Indian financial institution announced.
RBI Monetary Policy 2021: The Federal Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) kept the repo rate unchanged at 4 per cent while maintaining an ‘accommodative stance’ as long as necessary to mitigate the impact of the COVID-19 pandemic, RBI Governor Shaktikanta Das announced Wednesday.
The RBI governor announced that the choice was taken unanimously and added that the reverse repo rate too was kept unchanged at 3.35 per cent.
The Indian financial institution was widely expected to stay key interest steady amid a surge in COVID-19 cases within the country. consistent with a recent Reuters poll, 65 of 66 economists surveyed said the RBI’s monetary policy committee (MPC) will leave rates unchanged.
Last week, the govt had asked the RBI to take care of retail inflation at 4 per cent with a margin of two per cent on either side for an additional five-year period ending March 2026.
This is the fifth time during a row that the RBI has maintained a standing quo on policy rate. Das said that the financial institution will keep inflation at the targeted level and also added that the recent rise in COVID-19 cases has created uncertainty over economic process recovery.
The RBI governor said that the main target must get on containing the spread of coronavirus and towards economic recovery.
Speaking about the economic process for the fiscal year 2021-22 (FY22), Das said that the MPC kept the GDP estimate for FY22 unchanged at 10.5 per cent. the primary quarter (Q1FY22) GDP growth outlook is estimated at 22.6 per cent, and therefore the second quarter (Q2FY22 GDP) growth is seen at 8.3 per cent.