Mumbai: The Reserve Bank of India (RBI) on Wednesday kept key interest rates unaltered and maintained an accommodative policy stance to nurture a fragile economic recovery amid a new wave of Covid-19 cases.<\/p>\n
The Reserve Bank of India (RBI) kept the repo rate unchanged at 4 pc.<\/p>\n
The reverse repo rate remained unchanged at 3.5 percent, and the marginal standing facility and bank rate kept unchanged at 4.25 percent.<\/p>\n
Announcing the bi-monthly policy today the governor said that the RBI will remain accommodative as long as necessary to sustain growth on a durable basis.<\/p>\n
RBI had kept the key interest rate (repo) unchanged for the fifth consecutive meeting.<\/p>\n
On the back of the COVID-19 pandemic, the central bank has cut policy rates to 4 percent through two rate cuts of 75 bps in March\u201920 and 40 bps in May\u201920.<\/p>\n
The global economy is showing some recovery but the path remains uncertain, said RBI governor Shaktikanta Das.<\/p>\n
RBI said India’s GDP Growth is projected at 10..5 pc in the financial year 2021-22 while inflation is seen at 5.2% in the first half of FY22. For Q3 and Q4, CPI inflation is seen at 4.4pc and 5.1 pc respectively, the governor said.<\/p>\n
In spite of the surge in Covid-19 infections, the economic activity is normalizing the governor said adding that urban demand has gained traction and should get a fillip from the recent vaccination drive.<\/p>\n
“Firms engaged in manufacturing, services, and infrastructure polled by RBI in March are optimistic about the pick-up in demand and expansion in business activity in FY22,” Das added.<\/p>\n