The Reserve Bank of India's Monetary Policy Committee its policy meet on Friday decided to keep repo rate unchanged at 4%.
"Inflation has eased below the tolerance level of 6%. Outlook on growth has improved significantly," says RBI Governor Shaktikanta Das. He also said that signs of recovery have strengthened further and the list of normalising sectors is expanding.
Here are a few key takeaways from RBI's monetary policy statement:
- Policy repo rate unchanged at 4%
- Reverse repo rate unchanged at 3.35%
- GDP growth projected at 10.5% for FY22
- CPI inflation target cut to 5.2% from 5.8%
- Inflation eased below tolerance level of 6%; Govt to review inflation target for RBI by March 2021
- Stance of liquidity management continues to remain accommodative in line with monetary policy
- MSF and bank rate unchanged at 4.25%
- RBI to form an expert panel to strengthen primary urban co-operative banks
- Cash reserve ratio to be gradually restored to 4% by May 27
- RBI to allow retail investors to directly access G-sec market