E-Paper
RBI Monetary Policy: Repo rate, reverse repo rate remain unchanged, real GDP growth projected at 7.8%
RBI Monetary Policy: The pandemic holds the world economy hostage once again, Governor Shaktikanta Das said as he announced the accommodative stance of the monetary policy committee.
The Reserve Bank of India on Thursday kept the repo and the reverse repo rate unchanged in its first monetary policy review after Union Budget 2022. The current repo rate in 2021 is at 4% and the reverse repo rate is at 3.35%. This is the 10th time that the RBI kept the lending rates unchanged and maintained an accommodative stance amid the Covid pandemic. However, experts anticipated a shift from the accommodative stance to a neutral stance in this policy meeting.
The pandemic holds the world economy hostage once again, Governor Shaktikanta Das said. Real GDP growth for 2022-23 has been projected at 7.8%, the Governor said.
Giving a lowdown about the pandemic situation, Das said the universal focus amid the pandemic is shifting to a targeted containment strategy, universal vaccination and booster doses.
Some loss of momentum in economic activity has been reported in some sectors including sales of automobiles, two-wheelers etc, the Governor said adding that the renewed surge of global crude oil price needs to the closely monitored.
The six-member Monetary Policy Committee headed by Reserve Bank of India Governor Shaktikanta Das started deliberations on the bi-monthly policy review on Tuesday and made the announcements on Thursday. The meeting of the top bank was originally scheduled to take place between February 7 and February 9, but was deferred by a day after the Maharashtra government declared February 7 a public holiday to mourn the death of legendary singer Lata Mangeshkar.
