RBI Monetary policy: RBI Governor Shaktikanta Das says repo rate to remain unchanged; kept at 4%

RBI Governor Shaktikanta Das says repo rate to remain unchanged. The monetary policy committee (MPC) has decided to maintain an accommodative stance.

The repo rate is maintained at 4 percent and reverse repo rate at 3.35 percent.

MPC realised that the need is to support growth which why the MPC-headed by Das realised the need to maintain status quo, stated the governor.

CPI inflation estimate has been revised to 5.2 percent for Q4FY21, he stated. "For H1, the range is 5.2 per cent to 5 per cent. For Q3 of next year, we are projecting 4.3 per cent. We are assessing that the risks will be broadly balanced." Vegetables prices likely to remain soft in near term; inflation to be revised to 5.2 per cent in Q4 of FY21.

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"Inflation has eased below the tolerance level of 6 percent," Das added.

He stated outlook on growth has improved significantly.

This was the first monetary policy since Finance Minister Nirmala Sitharaman presented Budget 2021 in the Lok Sabha, amid the Covid-19 pandemic.