INSUBCONTINENT EXCLUSIVE:
The Reserve Bank has slashed its key lending rates i.e
repo rate by 115 basis points since March 2020HighlightsThe RBI kept repo rate at four per cent and reverse repo at 3.35 per cent The
RBI trimmed real GDP growth projection for FY2022 to 9.5 per cent RBI had last cut its policy rates on May 22, 2020, in an off-policy
cycle
The Reserve Bank of India (RBI) has kept the benchmark rates unchanged and "decided to continue with its
accommodative stance as long as necessary to support growth and keep inflation within the target" at a time when the country is battling
against the second wave of the pandemic.The central bank has kept the repo rates - the key interest rates at which it lends money to
commercial banks - steady at four per cent and the reverse repo rate - the rate at which RBI borrows money from banks, unchanged at 3.35 per
cent, the RBI Governor Shaktikanta Das said at the end of the three-day Monetary Policy Committee (MPC) meeting that started on Wednesday
The central bank has also projected real GDP growth of 9.5 per cent for this financial year, which is lower compared to the
released earlier this week, the economy contracted by 7.3 per cent in financial year 2020-21, while the agriculture sector witnessed a
growth of 3.6 per cent, and the services and industry sectors contracted by 8.4 per cent and seven per cent respectively.Mr Das however
expressed confidence that resilience of the agricultural sector, forecast of normal monsoon and the gathering global economic momentum will
is likely to speed up, going ahead.The Monetary Policy Committee (MPC) has kept the key benchmark rates unchanged in the past five monetary
The central bank had last cut its policy rates on May 22, 2020, in an off-policy cycle when the covid-19 pandemic first shook the
country.The Reserve Bank has slashed its key lending rates i.e
repo rate by 115 basis points since March 2020 to cushion the economy from the aftershock of coronavirus.Many economists believe that the
worse may be over as cautious unlocking has started in many states amid initial signs that the second Covid curve may have tapered.The
retail inflation has also eased to a three-month low of 4.29 per cent on the account of reduction in food prices such as vegetables and
cereals, according to government data.The RBI in its bi-monthly monetary policy review in April 2021 targeted the retail inflation at 5.2
per cent in the first half of the current fiscal 2021-22 and within the two - six per cent band in the medium term.RBI Governor also said
that the central bank will open a special liquidity window of Rs 15,000 crore till March 30, 2022, with tenors of up to three years at the
