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RBI keeps repo rate unchanged, retains its accommodative stance: Reports

By Saima Siddiqui 
Updated Date

New Delhi: The Reserve Bank of India (RBI) Governor, Shaktikanta Das, on Friday announced decisions on key rates after the monetary panel concludes its three-day meeting on June 4.

Also Read :- India's Q1 GDP grows at 13.5 % in April-June 2022-23, fastest pace of expansion in a year

RBI kept interest rates unchanged at a record low at 4%. The panel will act to support growth by retaining its accommodative stance for as long as necessary, Governor Das said.

The policy announcement comes amid huge economic disruptions inflicted by the second wave of coronavirus cases in India. Most of the analysts polled by Bloomberg predict that the RBI will leave key rates unchanged.

Highlights RBI Monetary policy

-G-SAP 2.0 worth ₹1.2 lakh crore will be taken in the second quarter FY22 to support the market.

Also Read :- RBI changes its Monetary Policy Meeting dates due to administrative requirements

-Focus of RBI is turning to equitable distribution of liquidity: RBI

-The country’s foreign exchange reserves rose by USD 2.865 billion to a record high of USD 592.894 billion for the week ended May 21, boosted by gold and currency assets, RBI data showed on Friday.

-Rural demand is expected to remain strong due to normal monsoon forecast: Guv Das

-Considering all factors, real GDP is seen at 9.5% in FY21-22. CPI inflation is seen at 5.1% FY21-22: RBI Governor Shaktikanta Das.

-Upside risks of inflation emanate from the second covid wave, says Governor Shaktikanta Das.

Also Read :- Indian rupee falls to new low against US dollar, market watches for RBI's intervention

-Latest CPI inflation print offers RBI some policy elbow room, says Governor Shaktikanta Das.

-Resilience of agriculture, gathering momentum of global economy can provide tailwind to domestic economy, says RBI governor.

-Reverse Repo Rate maintained at 3.35%, MSF rate at 4.25% & Bank Rate at 4.25%.

-Gov Das quotes Epictetus: “The greater the difficulty the more glory in surmounting it.”

-The Monetary Policy Committee voted unanimously to keep repo rate unchanged at 4% and maintain an accommodative stance, says RBI Governor Shaktikanta Das.

-The second wave of Covid-19 ravaging across several states since April. MPC was of the view that at this juncture, policy support from all sides is required, Das said.

Also Read :- Rajiv Ranjan, Sitikantha Pattanaik appointed as executive directors of RBI

RBI Governor’s address:

-Monetary policy decision and rationale

-Assessment of growth and inflation

-Guidance on liquidity and financial markets

-Additional measures and Broad approach of RBI going forward

-Experts predict upward revision for inflation, downward revision for GDP growth.

-The Reserve Bank of India will likely keep policy rates unchanged for the sixth straight meeting, amid fears of inflation adding to the impact of the second wave of covid infections.

Also Read :- One97 Communications shares slump to all time low after RBI's curbs on Paytm bank

-The central bank, which expects the economy to expand 10.5% in the year that began April, may probably lower its forecast after a slew of recent high-frequency indicators showed a hit to activity.

-The rupee snapped its three-day losing streak and closed 18 paise higher at 72.91 against the US dollar.

-RBI on Monday asked banks, NBFCs and payment system providers not to refer to its earlier virtual currencies-related circular, that was issued in April 2018 and later aside by the Supreme Court, in their communications to customers.

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