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Thursday, January 20, 2022

Indian economy on recovery path but it can’t be immune to global situation: RBI Governor | Economy News

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New Delhi: RBI Governor Shaktikanta Das on Wednesday said that the Indian economy is relatively well positioned on path of recovery but it cannot be immune to global situation, says Governor Das. 

Das, announcing the outcome of the Reserve Bank of India (RBI) Monetary Policy said that Globally, economies are opening up, activities level are reaching pre-pandemic level.

He also said the headline inflation would peak in the fourth quarter of the current fiscal. The inflation projection has been retained at 5.3 per cent for the current financial year.

Retail inflation rose to 4.48 per cent in October from 4.35 per cent in September, mainly due to higher fuel and edible oil prices.
MPC has been given the mandate to maintain annual inflation at 4 per cent until March 31, 2026, with an upper tolerance of 6 per cent and a lower tolerance of 2 per cent.

The RBI on Wednesday kept the benchmark interest rate unchanged at 4 per cent and decided to continue with its accommodative stance in the backdrop of concerns over the emergence of the new coronavirus variant Omicron.

This is the ninth time in a row that the Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das has maintained the status quo. RBI had last revised its policy repo rate or the short-term lending rate on May 22, 2020 in an off-policy cycle to perk up demand by cutting the interest rate to a historic low.

MPC has decided to keep benchmark repurchase (repo) rate at 4 per cent, Das said while announcing the bi-monthly monetary policy review. Consequently, the reverse repo rate will continue to earn 3.35 per cent for banks for their deposits kept with RBI.

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