RBI Monetary Policy HIGHLIGHTS: The Reserve Bank of India’s Monetary Policy Committee has kept the policy rate unchanged at 4% and voted unanimously to maintain the status quo with an accommodative stance. RBI Governor Shaktikanta Das, further said that the RBI projects India’s GDP growth rate will be at 10.5% for the upcoming fiscal year. “The outlook on growth has improved significantly, with positive growth impulses becoming more broad-based, and the rollout of the vaccination programme in the country auguring well for the end of the pandemic,” Governor Das said. On the inflation front, the MPC projects retail inflation for the current quarter of this fiscal at 5.2%, withing the tolerance band of the RBI.
The Reserve Bank of India, along with the MPC announcements, also shed light on other measures that the central bank is working on the strengthen the financial system. RBI Governor said that the central bank is working to allow retail investors to invest in government securities after opening Gilt accounts with the RBI. Along with this, RBI has also allowed foreign portfolio investors (FPI) to invest in security receipts and debt instruments issued by Asset Reconstruction Companies. RBI Governor Das assured markets that the central bank will continue to maintain ample liquidity even though he discussed the restoration of Cash Reserve Ratio (CRR).