2 min read.Updated: 06 Aug 2021, 10:54 AM ISTLivemint
RBI Policy: Governor Shaktikanta Das announced the August bi-monthly monetary policy statement today, kept repo rate unchanged
The Reserve Bank of India (RBI) governor Shaktikanta Das today announced the August bi-monthly monetary policy statement. As expected, the RBI has kept the repo rate unchanged at 4% for the seventh straight meeting. The Monetary Policy Committee (MPC) continues to maintain its 'Accomodative’ stance. The reverse repo rate stands at 3.35%.
The statement follows the three-day review meeting of the six-member MPC which had begun on Wednesday. Majority of economists had expected RBI’s MPC to keep the key lending rate unchanged.
The central bank continues to believe that a hasty withdrawal of monetary policy support could disturb the economic recovery that is taking shape. Economists, therefore, expect RBI to commence policy normalization only by the fourth quarter of the current fiscal year.
RBI Monetary Policy updates:
The Governor again reiterated that the RBI's priority would be "to promote growth within the framework of financial stability". The RBI is rightly concerned that any departure from the present pro-growth monetary policy may " kill the nascent and hesitant recovery. " The communication from the central bank augurs well for the continuation of the growth impulses in the economy," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
"In an expected move, MPC kept the rates unchanged and continued with the accommodative stance. Though the MPC voted unanimously to keep the rates unchanged, votes for the continuance of accommodative stance were at 5:1. It shows that the inflation debate is getting more prominent. The forecast of inflation rate for FY22 was revised upwards to 5.7 per cent from 5.1 per cent announced earlier. RBI's assurance to conduct OMOs when needed would help to keep the bond yields in check," said Deepthi Mathew, Economist at Geojit Financial Services.
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The Reserve Bank of India (RBI) has announced the monetary policy in which it has kept the repo rate unchanged at 4%, announces Governor Shaktikanta Das