The Reserve Bank of India (RBI) has kept the repo rate under the liquidity adjustment facility (LAF) unaltered at 4.0%. Subsequently, the reverse repo rate under the liquidity adjustment facility stays unaltered at 3.35 % alongside, the marginal standing facility (MSF) rate just as the bank rate at 4.25% each.
The monetary policy committee or MPC of RBI likewise chose to proceed with the accommodative position as long as vital, at any rate during the current budgetary year and into the following monetary year to restore development on a solid premise and moderate the effect of COVID-19 on the economy, while guaranteeing that swelling stays inside the objective, going ahead. These choices align to accomplish the medium-term focus for consumer price index or CPI inflation of 4 % inside a band of +/ – 2 per cent while supporting development.
On the financial development front, RBI said that the genuine gross domestic product (GDP) development in 2020-21 is expected to be negative at (- ) 9.5 per cent, with chances inclined to the drawback: (- ) 9.8 per cent in Q2FY21; (- ) 5.6 per cent in Q3; and 0.5 per cent in Q4. Genuine GDP growth for Q1FY22 is put at 20.6%. On the inflation front, consumer price index inflation is extended at 6.8 % for Q2FY21, at 5.4-4.5 % for H2FY21 and 4.3 % for Q1FY22, with risks, comprehensively adjusted.
Thank God 🙏
I thought they cut the repo and reverse repo.