Maintaining the status quo for the third time in a row, the Reserve Bank of India decided on Friday to keep the benchmark interest rate unchanged at 4%, but maintained an accommodative stance, implying further rate cuts to come. if the need arises to support the economy hit by the COVID-19 crisis. The MPC voted unanimously to keep rates stable.
RBI’s bi-monthly three-day policy is in effect from Wednesday and the outcome of the six-member MPC led by the governor was announced today.
At its previous policy meeting in October, the Reserve Bank had kept the key repurchase rate unchanged in light of rising retail inflation, which persistently remained above its comfort level.
The RBI’s post-policy press conference is scheduled for 12:00 pm today, the RBI tweeted.
The benchmark repurchase rate was unchanged at 4%.
Live updates of RBI monetary policy:
- Governor Das proposes to establish criteria for the distribution of NBFC dividends, introduces a risk-based audit in large NBFC and cooperatives
- Commercial and cooperative banks will retain their earnings and will not pay out dividends for fiscal year 21, says RBI governor
- The instant TLTRO will be expanded to cover other stressed sectors in conjunction with the ECLGS scheme, says Guv Das.
- Growth in the third and fourth quarters is expected to move into positive territory, Das says.
- Urban demand gains momentum. Positive economic signs are clouded by rising infections in some parts of the country, Das says.
- Governor Das says that real GDP growth for 2021 is projected at -7.5%.
- The recovery of rural demand to further strengthen, says Das.
- Nascent signs of recovery visible in the second half of 2021, says Das.
- We need to be competitive and not combative, says Das.
- With financial stability and the interest of depositors in mind, we have fixed problems at two scheduled commercial banks, Das says.
- The economic recovery is far from broad-based, says Das.
- Governor Das says that the accommodative stance will continue throughout the current financial year.
- MPC decides to maintain an accommodative stance for as long as necessary to underpin economic growth, says Governor Das.
- MPC believes that inflation is likely to remain high, although some relief could be seen in the winter months, says RBI Guv.
- The year 2020 has a great challenge, says RBI Guv.
- 2020 will be recorded as a watershed year in modern civilization, marked by the COVID19 pandemic, comparable in scale to the Spanish flu, with economic losses surpassing the Great Depression of the 1930s, Das says.
.
