Shaktikanta Das, the Governor of the Reserve Bank of India (RBI,) on the 9th of October, addressed a press conference and announced the Central Bank’s monetary policy decision.
The announcement regarding the monetary policy decision came three days after the deliberations of its monetary policy committee (MPC) meeting.
The six member MPC started a three day meeting from the 7th of October which concluded on the 9th of October.
Initially, the three day meeting was scheduled from the 29th of September. However, due to a delay in appointment of a independent member in MPC, the meeting was delayed to the 7th of October.
The previous monetary policy review was held on the 6th of August.
During the last review meeting, the RBI announced the repo rate and reverse unchanged at 4% and 3.35% respectively.
Here are the latest updates of the MSP meeting:
*From December, Real Time Gross Settlement (RTGS) to be available round the clock.
Shaktikanta Das said, “he RBI stands ready to undertake further measures as necessary to assure market participants of access to liquidity and easy finance conditions.”
*Real GDP expected to decline by 9.5% with risks tilted towards the downside.
*Modest recovery in the 1st half of the year could further strengthen in the 2nd half, following which economic activity to gain traction in quarter 3.
* The GDP growth may break out of contraction and enter positive zone by quarter 4 of current fiscal.
*Inflation likely to ease to projected target by quarter 4 of the Financial Year 2021.
*Focus must shift from containment to reviving economy.
*Inflation to decline in next 3 months, to ease closer to target by quarter 4 in 2021.
*Repo and reverse repo rate to stay unchanged at 4% and 3.35% respectively.
Stay tuned for further updates.
