RBI Monetary Policy: Reserve Bank retains GDP growth target at 9.5% in FY22
RBI's Monetary Policy Committee kept lending rates unchanged for the last six times.
New Delhi: The Monetary Policy Committee of the Reserve Bank of India (RBI) has not made any change in the interest rates. The repo rate has been kept at 4 per cent. The reverse repo rate or the borrowing of the central bank has remained unchanged at 3.35 per cent.
At the same time, the GDP growth estimate for FY22 has been retained at 9.5%.
RBI Monetary Policy:
RBI's Monetary Policy Committee kept lending rates unchanged for the last six times. RBI Governor Shaktikanta Das said, "June is in a much better position than in 2021. There is a need to be cautious on the possibility of a third wave.
Retail inflation expected to be 5.7%
RBI has retained the GDP growth forecast for the financial year 2021-22 (FY22) at 9.5%. At the same time, Shaktikanta Das has estimated the retail inflation rate to be 5.7%. Urban demand is expected to improve gradually and private consumption is increasing in rural areas.
The reverse repo rate will also remain at 3.35 per cent as before. While the Marginal Standing Facility Rate (MSFR) and Bank Rate will be 4.25 percent. Reserve Bank Governor Shaktikanta Das said the policy approach would still remain "accomodative". The "accomodative" stance means that the focus of the RBI will be on growing the economy by keeping the rate low.
RBI Governor Das said in the press conference that the threat of corona is not over yet. The economy is progressing as per the expectations of the MPC.
The economy is improving due to vaccination. Inflation increased in June. However, it may take time for the situation to return to normal. Some more measures will have to be taken to bring balance in supply and demand.
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