Mumbai : Amid Omicron scare The Reserve Bank of India (RBI) on Wednesday kept Repo Rate unchanged at 4 percent and Reverse Repo at 3.35 percent. subsequently Marginal Lending Facility and Bank Rate has been kept unchanged at 4.25 percent.
“On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (December 8, 2021) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 4.0 per cent” said RBI Governor Shaktikanta Das Das.
“The reverse repo rate under the LAF remains unchanged at 3.35 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 4.25 per cent” he said.
The MPC also decided to continue with the accommodative stance as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within the target going forward. 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.
- CPI inflation is projected at 5.3% for 2021-22: RBI Governor Shaktikanta Das.
- The projection for real GDP growth is retained at 9.5% in 2021-22, consisting of 6.6% in Q3, & 6% in Q4. Real GDP growth is projected at 17.2% for Q1 of 2022-23 and at 7.8% for Q2 of 2022-23.
- Recent reduction of Excise duty and state VAT on Fuel prices should support consumption demand.