The Governor of Reserve Bank of India, Shaktikanta Das announced RBI's bi-monthly monetary policy review on April 7, 2021. The Monetary Policy Committee has decided to keep the repo rate unchanged at 4 percent and reverse repo rate stands at 3.5 percent.
RBI keeps repo rate unchanged at 4%, maintains accommodative stance; Reverse repo rate stands at 3.35% pic.twitter.com/Nm9Lbxd8DH
— ANI (@ANI) April 7, 2021
The Monetary Policy Committee comprising six members and headed by the RBI Governor had met for three days starting from April 5, 2021. During the review meeting, the MPC decided to maintain its accommodative stance. This is the fifth straight time that the RBI has kept the repo rate unchanged.
The MPC also retained the projection of real GDP growth for 2021-22 at 10.5 percent, informed RBI Governor Shaktikanta Das.
The projection of real GDP growth for 2021-22 is retained at 10.5%: RBI Governor Shaktikanta Das pic.twitter.com/P7dYek5xfe
— ANI (@ANI) April 7, 2021
Domestic Growth Uncertainty
The RBI Governor noted that the recent surge in COVID19 cases adds uncertainty to the domestic growth outlook amid tightening of restrictions by some state governments. He highlighted that the focus must be on containing the spread of COVID-19 and pushing economic recovery.
The recent surge in COVID19 cases adds uncertainty to the domestic growth outlook amid tightening of restrictions by some state governments: RBI Governor Shaktikanta Das pic.twitter.com/UYhr3ESieH
— ANI (@ANI) April 7, 2021
CPI Inflation Target Revised
The MPC has revised the projection for CPI inflation to 5% in Q4 of 2021, 5.2%, in Q1 of 2021-22, 5.2% also in Q2 of 2021-22, 4.4% in Q3, and 5.1% in Q4 with risks broadly balanced.
The government had earlier on March 31, 2021, retained the inflation target at 4% with the lower and upper tolerance levels of 2% and 6%, respectively, for the next five years that is from April 2021 to March 2026, informed the RBI Governor Shaktikanta Das.
On March 31, 2021, the government retained the inflation target at 4% with the lower and upper tolerance levels of 2% and 6%, respectively, for the next five years that is from April 2021 to March 2026: RBI Governor Shaktikanta Das
— ANI (@ANI) April 7, 2021
RBI to provide adequate liquidity
The RBI Governor assured that the Reserve Bank of India will ensure that there is adequate liquidity in the system to ensure that productive sectors get adequate credit. The apex bank announced fresh lending of Rs 50,000 to all India financial institutions.
Fresh lending of Rs 50,000 crores will be provided to all India financial institutions: RBI Governor Shaktikanta Das on Monetary Policy
— ANI (@ANI) April 7, 2021
Other Decisions
The non-banking operators like prepaid payment instruments and white label ATMs regulated by the RBI can now take up direct membership in NEFT and RTGS transactions.
Comments
All Comments (0)
Join the conversation