RBI MPC Updates: There has been no change in interest rates. The repo rate remains unchanged at 4 per cent and the reverse repo rate at 3.35 per cent.
RBI Monetary Policy updates: Today the third monetary policy was announced by the Reserve Bank for the year 2021. Reserve Bank of India Governor Shaktikanta Das has decided not to make any change in interest rates. Repo rate has been kept at 4 per cent. At the same time, the reverse repo rate has been retained at 3.35 percent. The bank rate remains unchanged at 4.25 per cent.
RBI Governor said, Real GDP for FY21 will be at -7.3 percent. Revival in the economy is possible with a good monsoon, he said. Policy support is very important to bring back growth. The Reserve Bank has reduced the growth rate estimate for the current financial year i.e. 2021-22. According to RBI, the growth rate in the current financial year will be 9.5 percent. Earlier the Reserve Bank had estimated 10.50 per cent. Governor Das said that till the effect of Covid does not end, only the cooperative approach will be maintained. He said that exports will improve as global trends improve.
Rising inflation important challenge
Regarding not changing the interest rates, Shaktikanta Das said that due to the ever-increasing inflation, the Monetary Policy Committee of the Reserve Bank has decided not to change the policy rate.
Retail inflation expected to be 5.1 percent
MPC believes that the retail inflation rate will be 5.1% in the current financial year. Retail inflation is estimated to be 5.2 percent in the June quarter, 5.4 percent in the September quarter, 4.7 percent in the December quarter and 5.3 percent in the March quarter. The Reserve Bank has set a target of retail inflation at 4 per cent. However, the window of +/-2 percent i.e. upper limit of 6% and lower limit of 2% has been kept.
Vaccination will bring stability to the economy
Shaktikanta Das said that the vaccination will help in the stability of the economy. Exports will increase as global trends improve. Price pressure is under pressure from weak demand. Price pressure has been created due to the rise in costly crude and logistics cost. In such an environment, policy support is necessary in every way.
RBI will buy G-sec of 40 thousand crores on June 17
Once again the Reserve Bank has decided to buy government securities. On June 17, RBI will buy G-sec worth 40 thousand crores. For the first quarter, the central bank has set a target of buying government securities of Rs 1 lakh crore. So far he has bought G-sec worth 60 thousand crores. Between the second quarter i.e. July-September, the central bank will buy government securities worth 1.20 lakh crore.
Foreign reserves could reach $600 billion
15000 crore has been announced separately for the hospitality sector. The Reserve Bank said that its foreign reserve could reach $ 600 billion. The Reserve Bank said that its foreign exchange reserve could reach $ 600 billion. On May 28, RBI’s foreign exchange reserves increased by $ 2.865 billion to $ 592.894 billion, which is an all-time high so far.
