Maintaining status quo for the third time in a row, Reserve Bank of India on Friday decided to keep benchmark interest rate unchanged at 4% but maintained an accommodative stance, implying more rate cuts in the future if the need arises to support the economy hit by the COVID-19 crisis. The MPC voted unanimously to hold rates steady.
The three-day RBI bi-monthly policy is on since Wednesday and the outcome of the six-member MPC headed by the governor was announced today.
In its preceding policy meet in October, the Reserve Bank had kept the key repo rate unchanged in view of heightened retail inflation which has persistently remained above its comfort level.
RBI’s post-policy press conference is scheduled for 12:00 pm today, the RBI tweeted.
The benchmark repo rate had been left unchanged at 4%.
RBI Monetary Policy Live Updates:
- On-tap TLTRO will be expanded to cover other stressed sectors in tandem with ECLGS scheme, says Guv Das.
- Expect growth in Q3 and Q4 to move in positive territory, says Das.
- Urban demand gaining momentum. Positive economic indications clouded by rise in infections in a few parts of the country, says Das.
- Governor Das says real GDP growth for 2021 is projected at -7.5%.
- Recovery in rural demand to strengthen further, says Das.
- Nascent signs of recovery visible in second half of 2021, says Das.
- We need to competitive and not combative, says Das.
- With financial stability and depositor interest in mind we have fixed issues at two scheduled commercial banks, says Das.
- Economic recovery far from being broad-based, says Das.
- Governor Das says accommodative stance to remain through current financial year.
- MPC decides to maintain accommodative stance as long as necessary to prop up economic growth, says Governor Das.
- MPC of the view that inflation likely to remain elevated though some relief could be seen in winter months, says RBI Guv.
- Year 2020 has very challenging, says RBI Guv.
- 2020 will be recorded as a defining year in modern civilization, marked by COVID19 pandemic, comparable in scale to Spanish Flu, with economic losses exceeding The Great Depression of 1930s, says Das.
