Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday announced that the repo rate would remain unchanged at 4 percent for the eight straight times.
The reverse repo rate was also kept unchanged at 3.35 percent to keep a check on inflation and take out the economy following the ravages of the second wave of COVID-19 pandemic. The MSF bank rate was also not changed, said Das.
The RBI Governor announced the new monetary policy after a three-day meeting of the six-member Monetary Policy Committee (MPC). He informed that the MPC decided to continue with the accommodative policy stance to sustain growth and mitigate the impact of the Covid crisis.
“Recovery of the Indian economy is gaining traction and it’s in better shape than last MPC meeting,” he said, adding that the RBI took more than 100 measures since the onset of the Covid-19 pandemic.
He further informed that the growth impulses were strengthening and the inflation trajectory was better than anticipated. “We hope to sail towards normal times, due to resilience of economic fundamentals of our economy,” the RBI governor added.
Meanwhile, Das also maintained an unchanged GDP growth projection and said that India was on the way to achieve a GDP of 9.5 per cent in the current fiscal year of 2021-22.
“This consists of 7.9 per cent in the second quarter, 6.8 per cent in the third quarter and 6.1 per cent in the fourth quarter of 2021-22. Real GDP growth for the first quarter of fiscal year 2022-23 is projected at 17.2 per cent,” the RBI governor said.