Chennai: The Reserve Bank of India (RBI) has announced the monetary policy in which it has kept the repo rate unchanged at 4 per cent.
Monetary Policy Committee has decided to retain its ‘accommodative’ policy stance, Governor Shaktikanta Das said.
Das said that the central bank will remain accommodative as long as necessary to sustain growth on a durable basis. RBI pegged GDP growth for FY22 at 10.5 per cent.
The six-member monetary policy committee (MPC), headed by Governor Shaktikanta Das, retained repo rate at 4 per cent and reverse repo rate at 3.35 per cent.
“The MPC judged that monetary policy should remain accommodative till prospects of sustained recovery are well secured,” Das said.
Despite the surge in Covid-19 infections, the growth target also remained unchanged at 10.5 per cent for the fiscal, but inflation was tweaked upwards slightly.
The CPI inflation is expected to be 5 per cent for Q4FY21, 5.2 per cent in Q1FY22, 5.2 per cent in Q2FY22, 4.4 per cent in Q3FY22 and 5.1 per cent in Q4FY22 with risks broadly balanced.