RBI Monetary Policy: No change in interest rates, the growth rate may remain 9.5 percent in the current financial year

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Summary

Central Bank Governor Shaktikanta Das is announcing the decisions taken by the Monetary Policy Committee by holding a press conference. The six-member Monetary Policy Committee headed by Das decides on policy rates.

RBI Monetary Policy 2021: Reserve Bank of India Governor Shaktikanta Das - Photo: ANI

Expansion

The meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), which began on October 6, ended today. Due to the second wave of Corona, the Indian economy was affected due to strict restrictions imposed in many parts of the country during April and May. But now the restrictions have been relaxed a bit. So this meeting is very important. The Monetary Policy Committee of the Reserve Bank of India meets every two months. In this meeting, the improvement in the economy is discussed as well as interest rates are decided. The Reserve Bank last revised the policy rates on 22 May 2020.

Special Features:

  • RBI has not made any change in the repo rate. It remains at 4 percent. That is, customers have not got any new relief on EMI or loan interest rates.
  • The Marginal Standing Facility (MSF) rate is also stable at 4.25 percent.
  • Das further said that the reverse repo rate has also been kept constant at 3.35 percent.
  • Along with this, it has been decided not to make any change in the bank rate. It is at 4.25 percent.
  • The central bank has kept the monetary stance 'moderate'.
  • The Reserve Bank of India has forecast a growth of 9.5 percent in the country's real GDP in the current financial year 2021-22.
  • The GDP growth rate in the second quarter of this financial year was 7.9 percent, in the third quarter, 6.8 percent, and in the fourth quarter, 6.1 percent.
  • Shaktikanta Das said that in the first quarter of the financial year 2022-23, the country's real GDP can be 17.1 percent.