New Delhi: The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) on Friday kept policy rates unchanged at 4 per cent for the eighth time in a row and continued with an accommodative stance.
The six-member MPC, headed by Governor Shaktikanta Das, met for three days from October 6.
Repo rate is the rate at which RBI lends to banks, whereas reverse repo rate is the rate at which it borrows from banks.
Here are the major takeaways:
RBI maintains status quo for the 8th time
* RBI keeps repo rate unchanged at 4 per cent, maintains lenient stance
*Reverse repo rate also unchanged at 3.35 per cent.
* MPC voted 5:1 to maintain liberal stance, RBI governor said.
* The RBI last revised its policy repo rate on May 22, 2020 in an off-policy cycle to spur demand by cutting interest rates historically.
* MPC will continue with its liberal stance for as long as is necessary to support growth and keep inflation within target: Shaktikanta Das
GDP forecast remains at 9.5 percent
* The real GDP growth forecast for the financial year 2021-22 has been retained at 9.5 per cent.
* The GDP forecast includes 7.9 per cent in Q2, 6.8 per cent in Q3 and 6.1 per cent in Q4 of 2021-22.
* Real GDP growth for the first quarter of FY 2022-23 is estimated at 17.2 per cent.
* The GDP estimates include 7.9 percent for the second quarter, 6.8 percent for the third quarter and 6.1 percent for the fourth quarter of 2021-22.
Retail inflation forecast at 5.3% for FY22
* CPI inflation for the first quarter of FY 2022-23 is estimated at 5.2 per cent.
* Growth picks up, inflation more favorable than expected: RBI Governor
* Food inflation expected to remain subdued in the coming month due to record production of food grains: Das
The six-member MPC, headed by Governor Shaktikanta Das, met for three days from October 6.
Repo rate is the rate at which RBI lends to banks, whereas reverse repo rate is the rate at which it borrows from banks.
Here are the major takeaways:
RBI maintains status quo for the 8th time
* RBI keeps repo rate unchanged at 4 per cent, maintains lenient stance
*Reverse repo rate also unchanged at 3.35 per cent.
* MPC voted 5:1 to maintain liberal stance, RBI governor said.
* The RBI last revised its policy repo rate on May 22, 2020 in an off-policy cycle to spur demand by cutting interest rates historically.
* MPC will continue with its liberal stance for as long as is necessary to support growth and keep inflation within target: Shaktikanta Das
GDP forecast remains at 9.5 percent
* The real GDP growth forecast for the financial year 2021-22 has been retained at 9.5 per cent.
* The GDP forecast includes 7.9 per cent in Q2, 6.8 per cent in Q3 and 6.1 per cent in Q4 of 2021-22.
* Real GDP growth for the first quarter of FY 2022-23 is estimated at 17.2 per cent.
* The GDP estimates include 7.9 percent for the second quarter, 6.8 percent for the third quarter and 6.1 percent for the fourth quarter of 2021-22.
Retail inflation forecast at 5.3% for FY22
* CPI inflation for the first quarter of FY 2022-23 is estimated at 5.2 per cent.
* Growth picks up, inflation more favorable than expected: RBI Governor
* Food inflation expected to remain subdued in the coming month due to record production of food grains: Das
.