India News | Highlights of RBI's Monetary Policy Statement
Get latest articles and stories on India at LatestLY. Following are the highlights of RBI Governor Shaktikanta Das' statement and resolution of the Monetary Policy Committee (MPC):
New Delhi, Oct 9 (PTI) Following are the highlights of RBI Governor Shaktikanta Das' statement and resolution of the Monetary Policy Committee (MPC):
* Benchmark lending rate kept unchanged at 4 pc
* Indian economy expected to contract 9.5 pc this fiscal with downside risks
* Contraction 9.8 per cent projected in July-September; 5.6 pc in October-December and rebound in growth at 0.5 per cent in March quarter
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* GDP growth for April-June quarter 2021-22 fiscal projected at 20.6 pc
* Accommodative monetary policy stance maintained to support growth
* Indian economy entering into decisive phase in fight against coronavirus, focus must shift from containment to reviving economy
* Contraction in economic growth of Q1 behind; silver linings are visible
* GDP growth may break out of contraction and enter positive zone by March quarter of current fiscal
* Inflation to remain elevated in September quarter, but ease gradually towards the target over December and March quarters
* Retail inflation projected at 6.8 per cent for September quarter
* Current inflation hump transient; agriculture outlook looks bright, oil prices to remain rangebound
* RTGS fund transfer system for real-time fund transfer to become 24X7 from December
* Threshold for aggregate exposure of retail bank loans to one counterparty increased to Rs 7.5 crore from Rs 5 crore
* System-based automatic caution-listing for exporters discontinued to help them negotiate better terms with overseas buyers
* Comfortable liquidity position to be maintained; Rs 20,000 crore-OMO auction next week
* On-tap targeted long-term repo operations (TLTRO) to be conducted, with tenors of up to three years for Rs 1 lakh crore at a floating rate linked to the policy repo rate up to March 31, 2021
* All MPC members vote for keeping the policy repo rate unchanged and continue with the accommodative stance.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)