 "RBI maintains status quo; leaves benchmark lending rate unchanged at 4%")
Mumbai: Reserve Bank of India (RBI) on Thursday kept the benchmark interest rate unchanged at 4 per cent and decided to continue with its accommodative stance in the backdrop of elevated level of inflation. This is the tenth time in a row that the Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das has maintained the status quo. RBI had last revised its policy repo rate or the short-term lending rate on 22 May, 2020 in an off-policy cycle to perk up demand by cutting the interest rate to a historic low. This is the first MPC meeting after presentation of Budget 2022-23 in Parliament on 1 February, 2022. MPC has decided to keep benchmark repurchase (repo) rate at 4 per cent, Das said while announcing the bi-monthly monetary policy review. Consequently, the reverse repo rate will continue to earn 3.35 per cent interest for banks for their deposits kept with RBI. Following are the highlights of the RBI’s monetary policy statement 2021-22.
- Benchmark lending rate kept unchanged 10th time in a row at 4 per cent, reverse repo rate at 3.35 pc
- Projects GDP growth at 7.8 per cent for next fiscal, against 9.2 per cent this fiscal
- India charting different course of recovery than rest of the world; to be fastest growing economy
- RBI to continue with accommodative stance to revive and sustain growth; pandemic hold global economy hostage
- Retail inflation projected at 5.3 per cent for current fiscal, 4.5 per cent in FY23
- Inflation to peak in the current quarter within tolerance band, moderating in the second half of next fiscal
- Hardening global crude oil prices present upside risk to inflation
- Indian rupee showed resilience in the face of global spillovers
- Current account deficit to be below 2 per cent of GDP in current fiscal
- Overall system liquidity remains in large surplus
- RBI would continue to insulate domestic economy from global spillovers
- RBI extends by 3 months on-tap liquidity facility of Rs 50,000 crore for healthcare, contact intensive sector
- E RUPI digital voucher cap raised from Rs 10,000 to Rs 1 lakh and multiple-use permitted
- Next meeting of the Monetary Policy Committee (MPC) is scheduled during 6 April, 2022 to 8 April, 2022.
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