Reserve Bank of India (RBI) Governor Shaktikanta Das has announced the results of the Monetary Policy Review (MPC) meeting. RBI’s Monetary Policy Committee (MPC) has decided not to change the policy rate due to mitigating the impact of COVID-19. That is, there has been no change in the rates of repo rate and reverse repo rate. The repo rate is 4 per cent as before and the reverse repo rate is 3.35 per cent. The Marginal Standing Facility (MSF) rate is also at 4.25 per cent. That is, your EMI or loan interest rates will remain the same as before, no new relief has been given in this.
Along with this, Governor Shaktikanta Das also told that in the fiscal year 2021, the real GDP was -7.3 percent. At the same time, the inflation rate in April was 4.3 percent, which is a relief. He also said that revival of economy is possible with good monsoon. RBI committee has decided that till the end of Covid-19, the monetary stance will remain ‘moderate’.
Key things related to GDP
The Reserve Bank of India has reduced the country’s GDP estimate from 10.5% to 9.5 percent for the current financial year 2021-22. On the inflation rate, Das said that the inflation rate may be 5.20 percent in the first quarter, 5.4 percent in the second quarter, 4.7 in the third quarter and 5.3 percent in the fourth quarter.
Das said these things on price pressure
Governor Shaktikanta Das said that the government’s step is necessary to reduce the price pressure. Price pressure is under pressure due to weak demand. Price pressure remains on the back of high crude and buoyant logistics cost. In such an environment, policy support is essential by all means.
Das said that it is possible to stabilize the economy through vaccination. Exports will increase as global trends improve. Along with this, RBI said that G-SAP 1.0 has received good response, after which it has now been decided to bring G-SAP 2.0. There will be an auction of 1.2 lakh crores under G-SAP 2.0.
1600 crore liquidity facility to MSME
At the same time, in order to rescue the tourism and hospitality sector from the corona epidemic, the Governor of the Reserve Bank announced that relief will be given to these sectors through banks. Das said that a cash arrangement of Rs 15,000 crore will go to the banks. Liquidity facility of 1600 crores will be made for MSMEs.
The Monetary Policy Committee (MPC) meeting is held every two months.
Let us tell you that the three-day meeting of the Monetary Policy Committee (MPC) of RBI started on Wednesday. Monetary policy review meetings are held every two months. In the last MPC meeting held in April, RBI did not make any change in key interest rates.
