RBI maintains accommodative stance, keeps repo rate unchanged at 4%; GDP growth projected at 10.5%
New Delhi | Jagran Business Desk: The Reserve Bank of India (RBI) on Friday kept the repo rate unchanged at 4 per cent, while the marginal standing facility rate and the bank rate remain unchanged at 4.25 per cent and the reverse repo rate stands unchanged at 3.35 per cent.
The decision was taken during the RBI Governor led Monetary Policy Committee (MPC) meet on February 3rd, 4th and 5th. This is the first Monetary Policy discussed by the RBI Governor after the presentation of Union Budget 2021-22.
"The Monetary Policy Committee met on 3rd, 4th and 5th February and deliberated on current and evolving macroeconomic and financial developments both domestic and global. The MPC voted unanimously to leave the policy repo rate unchanged at 4 per cent," RBI Governor Shaktikanta Das said today.
"It also unanimously decided to continue with the accommodative stance of monetary policy as long as necessary at least through the current financial year and into the next year to revive growth on a durable basis and mitigate the impact of COVID-19 while ensuring that inflation remains within the target going forward," he added.
This is the fourth time in a row that MPC has decided to keep the policy rate unchanged. RBI had last revised its policy rate on May 22 in an off-policy cycle to perk up demand by cutting interest rate to a historic low.
Meanwhile, with the support of the recovery in the economic activities in the country, the RBI also projected a 10.5 per cent GDP growth for the financial year 2021, beginning April 1. Shaktikanta Das said that the growth outlook has improved significantly and the vaccination drive will help the economic rebound.
With regard to inflation, RBI Governor Shaktikanta Das said vegetable prices are expected to remain soft in the near term as the central bank projected retail inflation rate to come down to 5.2 per cent in the current quarter and progressively decline to 4.3 per cent by the third quarter of the next fiscal. The RBI Governor further said that the government will be reviewing the inflation target by March-end.
(With Agencies Inputs)
Posted By: Talibuddin Khan