New Delhi | Jagran Business Desk: The Reserve Bank of India (RBI) on Friday decided to keep the benchmark interest rate unchanged at 4 per cent but maintained an accommodative stance even as the economy is showing signs of recovery after the second COVID wave. This is the eighth time in a row that the Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das has maintained the status quo.
RBI had last revised its policy repo rate or the short-term lending rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting interest rate to a historic low.
Addressing a press briefing after the Monetary Policy Meeting, RBI Governor Shaktikanta Das said that the MPC has decided to keep the repo rate unchanged at 4 per cent, consequently, the reverse repo rate will also continue to earn 3.35 per cent for banks for their deposits kept with RBI.
Das said MPC voted unanimously for keeping the interest rate unchanged and decided to continue with its accommodative stance as long as necessary to support growth and keep inflation within the target.
Das also informed that the RBI MPC has also projected India's GDP Growth for Financial Year 2021-22 has been retained at 9.5 per cent. This consists of 7.9 per cent in Q2, 6.8 per cent in Q3 and 6.1 per cent in Q4 of 2021-22. The RBI Governor further said that the MPC has projected real GDP growth for Q1 of FY 2022-23 at 17.2 per cent.
Meanwhile, CPI inflation is projected at 5.3 per cent for the financial year 2022, while the CPI inflation for Q1 of FY 2022-23 is projected at 5.2 per cent, Das said.
"The recovery of Indian economy is gaining traction. It is in better shape than last MPC meeting. Growth impulses strengthening, inflation trajectory favourable than anticipated. Hope to sail towards normal times, due to resilience of economic fundamentals of our economy", RBI Governor Shaktikanta Das, as quoted by ANI, said.
In another important announcement, Shaktikanta Das said that the RBI has increased the limit of the Immediate Payment Service (IMPS). Now, the bank customers can transfer Rs 5 lakh through IMPS against the previous limit of Rs 2 lakh.
Posted By: Talibuddin Khan