The Reserve Bank of India on Thursday kept repo and reverse repo rates unchanged in its first monetary policy review after the 2022 Union Budget. The current 2021 repo rate is 4% and the reverse repo rate is 3.35%. This is the 10th time the RBI has kept lending rates unchanged and maintained an accommodative stance during the Covid-19 pandemic. However, experts expect the policy meeting to shift from an accommodative stance to a neutral stance.
Governor Shaktikanta Das said the pandemic is once again holding the world economy hostage. The Governor said real GDP growth is expected to be 7.8% in 2022-23.
Das downplayed the pandemic situation, saying the general focus during a pandemic is shifting to targeted containment strategies, universal vaccinations and booster doses.
Economic activity in some sectors, including automobiles, two-wheelers, etc., has reportedly lost some momentum, and the Governor added that another surge in global crude oil prices needs to be closely watched.
The six-member Monetary Policy Committee, headed by Reserve Bank of India Governor Shaktikanta Das, began deliberations on the bimonthly policy review on Tuesday and announced it on Thursday. The Supreme Bank’s meeting was originally scheduled to take place from February 7 to February 9, but after the Maharashtra government declared February 7 a public holiday to mourn the passing of legendary singer Rata Mangeshkar delayed by a day.
Complete News Source : Hindustan Times
