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RBI Monetary Policy Review: Shaktikanta Das led panel keeps policy rates unchanged

RBI Monetary Policy Review: The Reserve Bank of India (RBI) in its first by-monthly monetary policy statement of fiscal 2021-22 has kept the policy rates unchanged amid uncertainty created by a fresh surge in coronavirus infections.

RBI Monetary Policy Review: Shaktikanta Das led panel keeps policy rates unchanged
RBI Monetary Policy Review: The six-member Monetary Policy Committee headed by the Governor Shaktikanta Das expressed its comfort in terms of growth amid improving capacity utilisation and reviving consumer confidence. Photo: Reuters

RBI Monetary Policy Review: The Reserve Bank of India (RBI) in its first by-monthly monetary policy statement of fiscal 2021-22 has kept the policy rates unchanged amid uncertainty created by a fresh surge in coronavirus infections. That means the Repo Rate will remain at 4 per cent, Reverse Repo Rate has been left at 3.35 per cent and CRR will remain at 3 per cent. MPC saw inflation edging up to 5.2 per cent in the first half of the new fiscal from 5 per cent in the January-March period and moderate to 4.4 per cent in Q3 of FY22. The six-member Monetary Policy Committee headed by the Governor Shaktikanta Das expressed its comfort in terms of growth amid improving capacity utilisation and reviving consumer confidence. 

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Speaking on the RBI MPC RBI Governor Shaktikanta Das said, "The RBI MPC after its meeting on 5th, 6th and 7th April 2021 has decided ti keep the policy rates unchanged." Governor Shaktikanta Das said that the RBI will remain accommodative as long as necessary to sustain growth on a durable basis. Governor Das added that the MPC voted unanimously to keep repo rate unchanged at 4 per cent.

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While sharing the outcome of the three-day RBI MPC meeting, Governor Shaktikanta Das said that pressure on food items will depend on supply side measures. RBI Governor highlighted his concern over rising corona cases and indicated that vaccine distribution is key to global economic recovery along with its efficacy. He said that global economic growth is still a concern even though it is gradually resuming.

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RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) kept its estimate for economic growth unchanged at 10.5 per cent for the current fiscal. Das went on to add that the Central Bank will ensure ample liquidity in system so that productive sector gets adequate credit.

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Central bank has slashed the repo rate by a total of 115 basis points (bps) since March 2020 to soften the blow from the pandemic. This follows 135 bps worth of rate cuts since the beginning of 2019.

Speaking on the RBI Monetary Policy Committee meeting announcements Anuj Puri, Chairman at ANAROCK Property Consultants said, "As expected, the RBI kept the repo rate and the reverse repo rates unchanged at 4% and 3.35% respectively while maintaining an accommodative stance, with a view to aid the economic recovery process. With consumer inflation still trending at the upper end, the RBI intends to keep an eye on it in the coming months. India is witnessing its worst second wave of COVID-19, thereby raising some uncertainty. On a positive, the real GDP forecast for the FY 2021-22 remains strong at 10.5% in the wake of the vaccination drive that is in full swing in India."

The markets have received the news of RBI retaining the status quo on repo rate well. Sensex soared to 49,534.03, up by 332.64 points, even as Nifty jumped to 14,784.40 points, up by 100.90.

Written By: ZeeBiz WebTeam
Edited By: Harish Dugh
Updated: Wed, Apr 07, 2021
10:49 am
New Delhi, ZeeBiz WebDesk
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