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Monetary Policy Committee

Monetary Policy Committee (MPC) of Reserve Bank of India has kept various rates unchanged. The repo rate is kept unchanged at 4%, for the 7th consecutive time.

 

Key Points facts for Pre 

  • Other major rates like Reverse Repo Rate, Bank Rate, MSF, CRR, SLR have also been kept unchanged. MPC has also decided on a 5 to 1 majority to continue with the accommodative stance as long as necessary to revive the growth on a durable basis and to mitigate the impact of COVID19.

 

  • RBI retains GDP growth target at 9.5% in FY22 while CPI inflation can be seen at 5.7% in 2021-21.


  • Economic activity has broadly evolved on the lines of the MPC's expectation in June and the economy is recovering from the setback of the second wave.


  • Inflationary pressures are evoking concern. But current assessment is that these pressures are transitory and largely driven by adverse supply side factors.


  • Continued policy support from all sides - monetary, fiscal and sectoral is needed to nurture the hesitant recovery.

Source: AIR

Keywords
Topic GS-2: Economic and Social Development-Sustainable Development, Poverty, Inclusion, Social Sector Initiatives, MPC, RBI, Current events.