The Reserve Bank kept the repo rate unchanged at 4 percent and decided to maintain an accommodative position as the economy is yet to recover from effect of second Covid wave.
The RBI Governor made the announcement at the end of the bi-monthly Monetary Policy Committee (MPC) review meeting that began on Wednesday.
The reverse repo rate has actually also been left unblemished at 3.35 per cent.
The need of the hour is not to drop our guard and to stay watchful versus any possibility of a third wave specifically in the background of increasing infections in specific parts of the country, RBI Governor Shaktikanta Das stated in the virtual address.With today's decision, the RBI has actually kept the essential standard rates the same for the seventh time.
The central bank last cut its policy rates on Might 22, 2020, in an off-policy cycle when the covid-19 pandemic very first shook the country.All 61 economists surveyed by Reuters late last month had stated they see no change in the repo rate which has been consistent at 4 per cent given that Might last year.The Reserve Bank has actually slashed its crucial financing rates i.e.
repo rate by 115 basis points since March 2020 to cushion the economy from the aftershock of coronavirus.Observing that economy is slowly recovery from short hiatus, the Guv stated, a few of the high frequency indicators reflect healing.
Last week, the International Monetary Fund (IMF) reduced India's growth forecast from 12.5 per cent to 9.5 per cent for financial 2021-22 - down by three portion points, following the severe 2nd wave of COVID-19 pandemic in the country.However, for the next fiscal 2022-23, IMF has revised the economic development quote for India from 6.9 per cent to 8.5 per cent - higher by 1.6 portion points.