Unchanged main prices, estimated GDP at 10.5 per cent: Major RBI announcements.
Key Points:
- The Reserve Bank of India (RBI) declared its bi-monthly monetary policy decision.
- After the address, Das said that although India’s capacity and stamina were being checked in 2020.
- With an upper tolerance of around 6 per cent as well as a lower tolerance of 2 per cent.
On Friday, the Reserve Bank of India (RBI) declared its bi-monthly monetary policy decision, which arrives four days after Union finance minister Nirmala Sitharaman submitted the Union budget.
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Shaktikanta Das RBI Governor claimed:
RBI Governor Shaktikanta Das claimed, while announcing its decisions that perhaps the Monetary Policy Committee (MPC) has voted uniformly to keep the repo rate at 4% unaffected.
Since late March of last year, the repo rate has been slashed through 115 basis points to support the rising GDP growth rate (GDP) during the next financial year was estimated at 10.5 per cent.
Das during the end of the address:
(RBI) declared its bi-monthly monetary policy decision
After the address, Das said that although India’s capacity and stamina were being checked in 2020, this year will set the stage for a new economic period, adding that the economy will only shift from the future towards the upward track. “It is our strong belief, backed by forecast, that the damage caused on the economy by Covid-19 will be undone in 2021-22,” he added.
Here are the big announcements issued by the MPC of the central bank:
1. With an upper tolerance of around 6 percent as well as a lower tolerance of 2 percent, the RBI agreed to retain the benchmark repo rate constant at 4 percent until the ending of March Subsequently, at 3.35 per cent, the reverse repo rate also stayed unchanged That’s the fourth period the MPC has agreed to keep the policy rate constant in a row.
2. To “revive growth on a sustainable basis as well as mitigate the impact of the coronavirus (Covid-19) disease outbreak,” the MPC also agreed to proceed with an accommodative monetary policy stance as long as possible, at least during the current financial year, including the consecutive year.
3. For the financial year 2021-2022, the RBI has estimated a GDP growth rate of 10.5 percent. Das added that the economy during the next financial year will recover to 10.5 percent.
4. The RBI has reported that the retail inflation rate will decrease to 5.2% throughout the current quarter as well as to 4.3% by the third half of the next fiscal year. “By March-end, the Centre will evaluate the inflation aim Das continued.
