RBI keeps Repo rate unchanged at 4%, Cuts FY22 GDP forecast to 9.5%

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Mumbai : The Monetary Policy Committee of the Reserve Bank of India has voted unanimously to keep repo rate unchanged at 4% and maintain an accommodative stance, Said RBI Governor Shaktikanta Das during his press conference after the three day MPC meeting.

RBI also kept Marginal Standing Facility (MSF) rate and bank rates unchanged at 4.25%. The reverse repo rate also remains unchanged at 3.35%.

“These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth” the Governor said after the meeting.

GDP to grow at 9.5% in FY 22

Keeping in view the impact of the second wave of the pandemic, RBI has cut India’s GDP forecast to 9.5 per cent in FY2021-22 from 10.5 per cent earlier.

RBI has projected CPI Inflation to be at 5.1 per cent-5.2 per cent in Q1; 5.4 per cent in Q2; 4.7 per cent in Q3; and 5.3 per cent in Q4:2021-22.

 

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