New Delhi | Jagran Business Desk: The Reserve Bank of India (RBI) on Wednesday kept the key lending rates unchanged for the ninth consecutive time. As per the RBI Governor Shaktikanta Das, the Monetary Policy Committee (MPC) unanimously voted to keep the repo rate unchanged at 4 per cent while the stance remains accommodative. The reverse repo rate also remains unchanged at 3.25 per cent.
"Monetary Policy Committee (MPC) voted unanimously to keep the policy repo rate at 4% & the stance remains accommodative. MSF rate and bank rate remain unchanged at 4.25%. Reverse repo rate also remains unchanged at 3.35%", Shaktikanta Das said today.
The Central bank also retained the GDP growth forecast at 9.5 per cent for the current fiscal but cautioned that the economic recovery is not yet strong enough to be self-sustaining and durable.
"We need to be persevering, patient and persistent in our efforts. We also need to be aware, alert and agile to the new realities confronting us. Our efforts over the past one year and nine months have given us the confidence and a head start to face the challenges that lie ahead," he said.
"The projection for real GDP growth is retained at 9.5% in 2021-22, consisting of 6.6% in Q3, & 6% in Q4. Real GDP growth is projected at 17.2% for Q1 of 2022-23 and at 7.8% for Q2 of 2022-23", he added.
Projecting the inflation trajectory in line with its earlier estimate, the Reserve Bank of India (RBI) on Wednesday said the retail inflation is expected to be around 5.3 per cent during the current fiscal year.\
It is expected to ease further to 5 per cent by the first quarter of the next fiscal year, RBI Governor Shaktikanta Das said while announcing the monetary policy for the last time of this fiscal. The inflation trajectory is likely to be in line with our earlier projections, and price pressures may persist in the immediate term, Das said.
"CPI (consumer price index) inflation is projected at 5.3 per cent for 2021-22: 5.1 per cent in Q3; 5.7 per cent in Q4 of 2021-22, with risks broadly balanced. CPI inflation is then expected to ease to 5 per cent in Q1:2022-23 and stay at 5 per cent in Q2:2022-23," he said.
In the last policy review in October, the RBI had kept the key lending rates unchanged for eight consecutive times. The repo rate, at which the RBI lends short-term funds to banks, was kept unchanged at 4 per cent. The reverse repo rate, at which the RBI borrows from banks, was kept unchanged at 3.35 per cent. The Marginal Standing Facility (MSF) rate was also kept unchanged at 4.25 per cent.
The last time the RBI changed the policy rate was in May 2020. The central bank had slashed the key policy rates in May 2020 to historic lows to support the economy hit by the Covid-19 pandemic. Since then the RBI has maintained the status quo.
(With Agencies Inputs)
Posted By: Talibuddin Khan