RBI Monetary Policy today- The Reserve Bank of India (RBI) today announced the results of its two-month (RBI Monetary Policy today) monetary policy review. Announcing its results, RBI Governor Shaktikanta Das said that there has been no change in the repo and reverse repo rates. That is, now there will be no relief in loan rates, and the possibility of getting more interest on your investment has also been reduced.
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At present, the repo rate is 4% and the reverse repo rate is 3.35%. RBI has not changed the repo rate for the 9th time in a row. Repo rates are at their lowest level since April 2001. RBI’s Monetary Policy(RBI Monetary Policy today) Committee (MPC) meeting began on 6 December which was the last meeting of the committee in this calendar year.
GDP growth forecast retained at 9.5%
RBI has retained the GDP growth forecast for this fiscal year 2021-22 at 9.5%. Experts had already said that RBI will not change rates yet to further strengthen the recovery in the economy.
According to the Reserve Bank, GDP growth can be 6.6% in the third quarter (October-December) of this financial year and 6% in the fourth quarter (January-March).
Inflation may increase from January- RBI Monetary Policy today
Shaktikanta Das said that inflation is as per our earlier estimates. Due to the good Rabi crop, the prices will come down further. Vegetable prices may also come down. However, inflation will peak in the fourth quarter (January-March) of this financial year, but it will decrease after that.
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Economy recovering from aftershocks of the second wave of Corona
The central bank has projected consumer price index (CPI) inflation for the fiscal year 2022 at 5.3%. The RBI Governor said that the economy is recovering from the aftershocks of the second wave and it is picking up, but it does not seem to be sustainable for long. According to Shaktikanta Das, policy support is necessary for the economic recovery to last for a long time.
Oil demand may increase- RBI Monetary Policy today
He said the figures are showing signs of improving demand. Rural demand is also improving with the help of the agriculture sector. Shaktikanta Das(RBI Monetary Policy today) said that due to the reduction in excise duty and VAT of oil, demand is likely to increase.
UPI system payment system will be ready for feature phones
Shaktikanta Das(RBI Monetary Policy today) said that a study will be done to make various charges affordable in digital payments. To make digital payment accessible to more and more people, a feature phone-based UPI system payment system will be prepared. Similarly, the limit for payment through UPI in Retail Direct Gsec and IPO will be increased from 2 to 3 lakhs.
What is Repo and Reverse Repo Rate?
Repo rate is the rate at which banks get loans from the Reserve Bank. On the other hand, the reverse repo rate is the reverse, the reverse repo rate is a rate that banks get interested on keeping their money with the Reserve Bank.