MPC meet: Key highlights of RBI monetary policy review

By: |
August 06, 2021 12:12 PM

Following are the highlights of announcements made by RBI Governor Shaktikanta Das after the third bi-monthly monetary policy review by MPC on Friday:

shaktikanta dasNext meeting of the MPC scheduled for October 6 to 8. (Photo source: ANI)

Following are the highlights of announcements made by RBI Governor Shaktikanta Das after the third bi-monthly monetary policy review by MPC on Friday:

* Monetary Policy Committee keeps key interest rate (repo) unchanged at 4 pc for 7th consecutive time;

* Consequently, reverse repo rate too remains unchanged at 3.35 pc;

* Bank rate also remains same at 4.25 pc;

* RBI to continue its accommodative stance to sustain growth amid COVID;

* Retail inflation (CPI) projection at 5.7 pc during 2021-22; may drop to 5.1 pc in Q1 of next fiscal;

* RBI retains GDP growth projection for 2021-22 at 9.5 pc;

* RBI says some high-frequency indicators looking up again during June-July;

* RBI proposes to conduct two more auctions of Rs 25,000 crore each in August under G-SAP 2.0;

* Repo rate cut by 250 bps since February 2019, reduced bank lending rate by 217 bps;

* RBI says domestic borrowing costs have eased;

* Transmission to lending rates has been stronger for MSMEs, housing and large industries;

* Significant cut in interest rates on personal housing loans and loans to commercial real estate sector augurs well for the economy;

* RBI announces additional measures on liquidity front;

* After onset of COVID pandemic, RBI says it announced over 100 measures to mitigate its impact;

* Next meeting of the MPC scheduled for October 6 to 8.

Do you know What is India expected to grow 10 pc during current fiscal: NCAER Director General Poonam Gupt,FinMin releases Rs 9,871 cr grant to 17 state, Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1India emerges as Dubai’s second biggest trade partner
2Trade winds: High-stakes EU & UK free trade agreements make wish lists longer
3Growth story: Recovery to gain momentum, but jobs, capex still a concern