RBI keeps policy rate unchanged for 6th time in a row; cuts growth forecast to 9.5%


Team Udayavani, Jun 4, 2021, 10:38 AM IST

Mumbai: The Reserve Bank of India (RBI) on Friday decided to leave benchmark interest rate unchanged at 4 per cent but maintained an accommodative stance as the economy faces heat of the second COVID wave.

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

MPC decided to maintain status quo, that is keeping benchmark repurchase (repo) rate at 4 per cent, Das said while announcing the bi-monthly monetary policy review on Friday.

Consequently, the reverse repo rate will also continue to earn 3.35 per cent for banks for their deposits kept with RBI.

Das said MPC voted unanimously for keeping interest rate unchanged and decided to continue with its accommodative stance as long as necessary to support growth and keep inflation within the target.

The central bank lowered its estimate for economic growth to 9.5 per cent for the current fiscal from earlier projection of 10.5 per cent due to the impact of the second COVID wave.

This is the first MPC meeting after official data showed that Indian economy contracted 7.3 per cent in the last fiscal, weighed down by nationwide lockdown that pummelled consumption and halted most economic activities.

With regard to inflation, the governor said that retail inflation is likely to be 5.1 per cent during the current fiscal.

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.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Bantwal: Theft at Shree Mahalingeshwar temple

States not empowered to take over all private properties for distribution to serve common good: SC

Chhattisgarh NAN ‘scam’: FIR against 2 retired IAS officers, former AG

Davangere: MLA Basavantappa returns Rs 1.2 lakh left behind at shop

Woman dies after being hit by luxury car driven by ‘drunk’ youth in Karnataka

MLA Bharat Shetty condemns attack on Edneer Math Swamiji’s vehicle in Kerala

‘Idiot’: Former Canadian Sikh minister slams Justin Trudeau over Khalistan issue

Related Articles More

Markets fall in early trade amid unabated foreign fund outflows

New software for fast-tracking project approvals: Karnataka Minister Patil

In-flight passengers can access WiFi services only when allowed, say new rules

SEBI mulls separation of non-regulated activities; ‘cross-default’ definition for debenture trustees

Sensex plunges 942 points to settle at nearly 3-month low; RIL, HDFC Bank biggest drag

MUST WATCH

Gho Pooja in Deepavali Festival

Melukote Deepavali

Ganapathi Co-operative Society Ltd

Udayavani Chinnara Banna 2024

Annapoorna Aahar | Food Places In Mysore


Latest Additions

Union Minister H D Kumaraswamy booked for threatening police officer

Bantwal: Theft at Shree Mahalingeshwar temple

Delhi riots case: HC dismisses plea by Khalid Saifi against attempt to murder charge

States not empowered to take over all private properties for distribution to serve common good: SC

Chhattisgarh NAN ‘scam’: FIR against 2 retired IAS officers, former AG

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.