RBI maintains status quo, cuts FY22 growth forecast to 9.5%

The Reserve Bank of India (RBI) on Friday kept key interest rates unchanged and maintained an accommodative stance for the sixth consecutive time. The central bank’s Monetary Policy Committee (MPC) has unanimously decided to keep repo rate unchanged at 4 per cent while the reverse repo rate has been maintained at 3.35 per cent.

“RBI keeps interest rates unchanged, continues with accommodative stance to revive and sustain growth on sustainable basis,” said RBI Governor Shkatikanta Das.

“Monetary Policy Committee (MCC) voted to maintain status quo i.e. repo rate remains unchanged at 4 per cent. Marginal Standing Facility (MSF) rate and bank rates remain unchanged at 4.25 per cent. The reverse repo rate also remains unchanged at 3.35 per cent,” Governor Das said.

The MPC’s decision is in line with what economists had predicted earlier.

During his MPC address, Shaktikanta Das gave several details about the economic situation during the second wave. He, however, maintained that the second wave has not hurt the economy as much as the first wave.

The central bank has revised its GDP growth for the current fiscal year or FY22 to 9.5 per cent, compared with the earlier 10.5 per cent. The RBI has also projected retail inflation for FY22 at 5.1 per cent.

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