RBI Monetary Policy keeps repo rate unchanged; FY22 growth oulook retained at 10.5%

The Reserve Bank of India on Wednesday announced the monetary policy in which it has kept the repo rate unchanged at 4 per cent further deciding to retain its 'accommodative' policy stance, Governor Shaktikanta Das said. The governor said that the central bank will remain accommodative as long as necessary to sustain growth on a durable basis.

 

 

Earlier, majority of bankers and economists had said the central bank is maintain its accommodative stance to entrench the recovery that has begun. Economists expect the RBI to stand pat on rates through fiscal 2022 and hike rates maybe towards the end of the current financial year or the next. The central bank's monetary policy committee cut rates by 135 basis points over five straight meetings last year. However, it kept the policy repo unchanged at 5.15 per cent due to growing concerns over inflation in December.

 

 

-To ensure orderly conduct of government borrowing; preserve financial stability: Das

 

-Maximum end of day balance for payment banks doubled to ₹2 lakh

 

-RTGS and NEFT facilities will be extended extends to digital payments intermediaries, beyond banks

 

-Enhancing ways & means advance (WMA) limit to ₹47,010 crore, up 46% from current limit of ₹32,225 crore: RBI Governor

 

-Governor Das says that a body will be set up to review the functioning of Asset Reconstruction Companies (ARCs) and recommend measures.

 

- ₹50,000 crore of lending support to be provided to Nabard, NHB and Sidbi as fresh lending in 2021

 

-The TLTRO scheme is being extended by 6 months, up to September 30, 2021

 

-To purchase ₹1 lakh crore of G-secs under G-SAP in Q1: Das

 

-RBI Governor announces Secondary Market G-Sec Acquisition Programme 1.0; to purchase ₹25,000 crore of G-Secs on April 15 under G-SAP.

 

-RBI will support market with adequate liquidity via its various tool kits: Governor

 

 

-RBI is indirectly expanding liquidity. Have conducted liquidity for orderly market conditions: Das

 

-CPI for FY22 is seen at 5.1%

 

-Q1FY22 GDP growth outlook is 22.6 percent, and for Q2FY22 at 8.3 percent, said the governor

 

-GDP growth outlook for FY22 is maintained at 10.5 percent. The MPC had projected this estimate during the previous policy announcement.

 

-Global economy is showing some recovery but the path remains uncertain, says Das

 

-Rural demand remains resilient, urban demand gaining traction and should pick up: Governor Das

 

-RBI Governor Shaktikanta Das says vaccine distribution & its efficacy is key to global economic recovery

 

-MPC voted unanimously to leave repo rate unchanged

 

-The central bank will remain accommodative as long as necessary to sustain growth on a durable basis, says Shaktikanta Das

 

-Marginal standing facility and bank rate kept unchanged at 4.25%

 

-RBI keeps repo rate unchanged at 4%, maintains accommodative stance; Reverse repo rate stands at 3.35%

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