Announcing the key decisions of the monetary policy committee, the Reserve Bank of India (RBI) has kept the repo rates unchanged at 4%. This is the first monetary policy announcement after the presentation of the Union Budget 2021-22 on February 1.
"The Monetary Policy Committee met on 3rd, 4th and 5th February and deliberated on current and evolving macroeconomic and financial developments both domestic and global. The MPC voted unanimously to leave the policy repo rate unchanged at 4 per cent," said Das.
"It also unanimously decided to continue with the accommodative stance of monetary policy as long as necessary at least through the current financial year and into the next year to revive growth on a durable basis and mitigate the impact of COVID-19 while ensuring that inflation remains within the target going forward," he added.
The marginal standing facility rate and the bank rate remain unchanged at 4.25 per cent while the reverse repo rate stands unchanged at 3.35 per cent, the RBI Governor informed.
"Signs of economic indicators improved significantly since RBI's last meeting in December." RBI Governor Shaktikanta Das said.
He added that the projection for CPI inflation has been revised to 5.2% from January to March 2021.
"The MPC decided to continue with an accommodative stance of monetary policy as long as necessary, at least through the current financial year and into next year to revive growth on a durable basis and mitigate the impact of Covid-19," Das said.
He also informed that inflation has eased below the tolerance level of 6%.
"Inflation has been better than what was expected in December meeting and eased below tolerance level of 6%," he said.
The RBI Governor has estimated the country's economic growth rate i.e. GDP growth rate to be 10.5 percent in 2021-22. He said that our strength was tested in 2020 and a new economic era is being created in 2021.