Home / News / India /  RBI Policy: Governor Das' comments post rate decision

The Monetary Policy Committee of the Reserve Bank of India (RBI) on Thursday unanimously decided to leave the key lending rate unchanged for the second consecutive bi-monthly policy at 5.15%. The committee, which maintained an accomodative stance, said there was scope for future policy action and that today's decision does not set the tone for resolutions going forward. The central bank's governor Shaktikanta Das, after the release of the MPC outcome, briefed the media.

Here are the highlights of Das' comments from the press conference:

  • MPC decides to keep repo rate, accomodative stance unchanged
  • MPC keeps status quo given the current growth-inflation dynamics
  • Should not see repeat of status quo as pointer for future action
  • Global economic activity has remained subdued since December
  • The Budget for FY2021 provides impetus to growth
  • MPC estimates Q4FY20 CPI at 6.5%, Q3FY21 CPI seen at 3.2%
  • Prices of onion will ebb in the coming months
  • Inflation will peak out this quarter as per MPC’s estimate
  • 2019 was full of surprises in terms of trigger for inflation
  • Will remain vigilant on potential generalisation of inflation
  • Transmission (of rates) to credit market is gradually improving
  • FY21 GDP will improve led by higher private consumption
  • Full effect of coronavirus is still unfolding on the global economy
  • External benchmarks have strengthened the transmission of rates
  • Monetary transmission should help boost India's growth
  • RBI keeps surplus liquidity for better transmission of rates
  • RBI decides to extend one-time debt restructuring to MSMEs, which are registered under GST, without classification as NPAs
  • RBI will incentivise bank credit for specific sectors
  • Operation twist is used as an instrument for better monetary policy transmission for the corporate bonds segment
  • As its debt manager, RBI will ensure that there are no disruptions in government borrowings
  • All our decisions are underlined by the idea of financial stability
  • There is no plan to monetise the government’s deficit at the moment

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