OPEN APP
Home >News >India >Inflation targeting topmost agenda, says Guv Das after MPC keeps rates unchanged

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.

The key lending rate of the RBI or the repo rate was left unchanged at 4% while the reverse repo rate or the key borrowing rate stayed at 3.35%.

Guv Das also answered questions at post-policy press conference organised virtually.

RBI Monetary Policy Highlights:

  • We are contstantly engaged with management of financal institutions where there is need to improve their IT systems
  • Our expectations on inflation over the last two months has not materialised, says RBI Guv.
  • RBI Governor says report by internal working group on ownership of private banks should not be seen as RBIs view or RBIs decision. We have not taken any view on this, our approach is consultative.
  • Inflation targeting has not been junked it is uppermost in our agenda, says Guv Das.
  • We will place our analysis on likely NPA situation in the financial stability report expected in the last week of December, says RBI Governor.
  • Difficult to have fixed template on bank rescues, each case is different.

---- --- ---- ----------

  • The Reserve Bank of India on Friday said retail inflation is likely to remain elevated and pegged it at 6.8 per cent for the third quarter of the current fiscal.
  • RBI proposes to enhance limits for contactless card payments from 2000 to 5000 from Jan 2021.
  • RTGS system will soon be made 24x7 in the next few days, says RBI governor
  • Governor Das proposes to put in place a criteria for NBFC dividend distribution, introduces risk-based audit in large NBFCs & co-op banks.
  • Commercial and co-operative banks will retain profits earned & will not give out dividends for FY21, says RBI Governor
  • 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.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Close
×
Edit Profile
My ReadsRedeem a Gift CardLogout