Mumbai, October 9: The newly appointed monetary policy committee of the Reserve Bank of India today kept the repo rate unchanged at 4 percent. RBI governor Shaktikanta Das informed that the mood of the nation is upbeat and the focus will shift on revival. The RBI governor further predicted that the GDP growth may turn positive by Q4.
“The deep contraction of quarter one is behind us, the silver lining is visible,” the governor said while announcing the policy decisions of the Monetary Policy Committee. “The mood of the nation has shifted from fear to hope,” Das said. RBI Monetary Policy: Repo Rate Unchanged at 4%, Reverse Repo Remains Unchanged at 3.3%.
The RBI has so far slashed rates by 115 basis points so far this year to support the economy amid the coronavirus pandemic. He further mentioned that MPC has decided to continue with the accommodative stance of monetary policy as long as necessary at least through the current financial year and next year.
Monetary Policy Committee (MPC) voted unanimously to keep policy repo rate unchanged at 4%. MPC also decided to continue with the accommodative stance of monetary policy as long as necessary at least through the current financial year & next year: Shaktikanta Das, RBI Governor pic.twitter.com/A2fEuo1oL7
— ANI (@ANI) October 9, 2020
For the year 2021, the real GDP is expected to decline by 9.5 percent with risks tilted towards the downside, said Shaktikanta Das.
The RBI said it will hold the MPC meeting from October 7 to October 9, having delayed it by a week in order to give the government time to appoint three new external members to the panel. The MPC which was earlier scheduled to meet between September 29 to October 1. In the last meeting as well, RBI had kept the repo and reverse repo rate unchanged at 4 and 3.3 per cent, respectively.
(The above story first appeared on LatestLY on Oct 09, 2020 10:21 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).