RBI keeps repo rate unchanged at 4%, forecasts 9.5% decline in GDP

Ready to undertake further measures: Das

Reserve Bank of India (RBI) stands ready to undertake further measures as necessary to assure market participants of access to liquidity and easy finance conditions: Shaktikanta Das, RBI Governor

Inflation

Our assessment is that inflation will remain elevated in September but ease gradually towards the target over Q3 & Q4. Our analysis also suggests that supply disruptions & associated margins and markups are the major factors driving up inflation: Shaktikanta Das, RBI Governor

GDP expected to decline by 9.5%

For the year 2021, real GDP is expected to decline by 9.5% with risks tilted towards the downside: Shaktikanta Das, RBI Governor

All rates remain unchanged

Marginal Standing Facility Rate & bank rate remains unchanged at 4.2% and the reverse repo rate stands unchanged at 3.35%: Shaktikanta Das, RBI Governor

Press conference by RBI Governor Shaktikanta Das

Monetary Policy Committee (MPC) voted unanimously to keep policy repo rate unchanged at 4%. MPC also decided to continue with the accommodative stance of monetary policy as long as necessary at least through the current financial year & next year: Shaktikanta Das, RBI Governor

Repo Rate unchanged

RBI keeps repo rate unchanged at 4%

The Reserve Bank of India is announcing the monetary policy after a three-day meeting of Monetary Policy Committee (MPC). The meeting began on October 7 with three new government-appointed members on the committee.

On September 28, the RBI had postponed the meeting of the MPC, which must have a quorum of four, as the appointment of independent members was delayed.

The government has appointed three eminent economists Ashima Goyal, Jayanth R Varma and Shashanka Bhide as members of the MPC.

The new members replace Chetan Ghate, Pami Dua, and Ravindra Dholakia. They were appointed on the panel for four years on September 29, 2016.

Here are live updates on monetary policy announcement:

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