Nation

RBI announces Bi-monthly policy; Maintains status quo in policy rates

The Reserve Bank of India today maintained status quo in policy rates as the Monetary Policy Committee (MPC) voted unanimously to keep the policy repo rate at 4% to keep the stance accommodative. While announcing the Bi-monthly policy RBI Governor Shaktikant Das said, MSF rate and bank rate will remain unchanged at 4.25%. Reverse repo rate will also remain unchanged at 3.35%. Shaktikant Das said that MPC has voted 5-1 to continue accommodative monetary policy stance as long as necessary to revive and sustain growth and mitigate impact of #COVID19 on the economy, while ensuring inflation remains within target.

Speaking about the GDP growth , RBI governor said, Notwithstanding a highly transmissible third wave driven by the Omicron variant of COVID-19, India is charting a different course of recovery from the rest of the world. It is poised to grow fastest among the major economies, as per the projections made by the IMF. This recovery is supported by large scale vaccination & sustained fiscal & monetary support. He said that the focus is on securing the economic and financial conditions of the vulnerable, the wage earners and all those who suffer the most. Accordingly, the emphasis is shifting to targeted containment strategies and a push towards universal vaccination and booster doses.

Speaking about the inflation RBI Governor said, the increase in inflation in December was entirely due to unfavourable base effects despite month-on-month decline in prices. But large buffer stocks of cereals and effective supply side measures have augured well for food inflation. Core inflation remains elevated, but demand-pull pressures are still muted. He cautioned that the renewed surge in international crude oil prices will have to be closely monitored.
He projected real GDP growth at 9.2% for 2021-22 and said that it is modestly above level of GDP for 2019-20. Real GDP growth for 2022-23 was projected at 7.8%. At the same time he also pointed out the persistent rise in international commodity prices, surge in volatility of financial markets and supply bottlenecks which can pose risks to these projections.

He underlined that the government’s thrust on capital expenditure and exports was expected to enhance productive capacity and strengthen aggregate demand. CPI inflation for 2022-23 was projected at 4.5%.

He added that policy actions of RBI have yielded desired results and it is now turning to rebalance liquidity. He announced that Variable Rate Repo operations of varying tenures will henceforth be conducted as and when warranted.

Secondly, variable rate repos and variable rate reverse repos of 14-day tenures will operate as the main liquidity management tool. He informed that from March 1, 2022, fixed rate reverse repo and MSF operations will be available only during 5.30 PM to 11.59 PM on all days, instead of from 9.00 AM to 11.59 PM.

He also announced some additional measures like extension of On-tap Liquidity Facilities for Emergency Health Services and Contact-intensive Sectors, voluntary retention route (VRR) – Enhancement of Limits, Review of Credit Default Swaps (CDS) Guidelines, Permission for Banks to deal in Foreign Currency Settled – Rupee Derivatives Market etc.

3 Comments

3 Comments

  1. Pingback: https://www.buoyhealth.com/blog/health/phenq-reviews

  2. Pingback: Anavar in australia

  3. Pingback: bloten tieten

Leave a Reply

Your email address will not be published.

twenty − nineteen =

News is information about current events. News is provided through many different media: word of mouth, printing, postal systems, broadcasting, electronic communication, and also on the testimony of observers and witnesses to events. It is also used as a platform to manufacture opinion for the population.

Contact Info

Address:
D 601  Riddhi Sidhi CHSL
Unnant Nagar Road 2
Kamaraj Nagar, Goreagaon West
Mumbai 400062 .

Email Id: [email protected]

West Bengal

Eastern Regional Office
Indsamachar Digital Media
Siddha Gibson 1,
Gibson Lane, 1st floor, R. No. 114,
Kolkata – 700069.
West Bengal.

Office Address

251 B-Wing,First Floor,
Orchard Corporate Park, Royal Palms,
Arey Road, Goreagon East,
Mumbai – 400065.

Download Our Mobile App

IndSamachar Android App IndSamachar IOS App
To Top
WhatsApp WhatsApp us