Highlights of RBI monetary policy review

PTI, Aug 6, 2021, 12:06 PM IST

Mumbai: Following are the highlights of announcements made by RBI Governor Shaktikanta Das after the third bi-monthly monetary policy review by MPC on Friday:

• Monetary Policy Committee keeps key interest rate (repo) unchanged at 4 pc for 7th consecutive time;
• Consequently, the reverse repo rate to remains unchanged at 3.35 pc;
• Bank rate also remains same at 4.25 pc;
• RBI to continue its accommodative stance to sustain growth amid COVID;
• Retail inflation (CPI) projection at 5.7 pc during 2021-22; may drop to 5.1 pc in Q1 of next fiscal;
• RBI retains GDP growth projection for 2021-22 at 9.5 pc;
• RBI says some high-frequency indicators looking up again during June-July;
• RBI proposes to conduct two more auctions of Rs 25,000 crore each in August under G-SAP 2.0;
• Repo rate cut by 250 bps since February 2019, reduced bank lending rate by 217 bps;
• RBI says domestic borrowing costs have eased;
• Transmission to lending rates has been stronger for MSMEs, housing and large industries;
• A significant cut in interest rates on personal housing loans and loans to the commercial real estate sector augurs well for the economy;
• RBI announces additional measures on liquidity front;
• After the onset of the COVID pandemic, RBI says it announced over 100 measures to mitigate its impact;
• The next meeting of the MPC is scheduled for October 6 to 8