No Changes in Bank, Repo and Reverse Repo rate: RBI Governor
Mumbai: The Reserve Bank of India (RBI)’s Monetary Policy Committee (MPC) has announced its decision on interest rates at 12 pm today. Accordingly, RBI monetary policy committee decides to leave the policy repo rate unchanged at 4%. The accommodative stance continues. While the reverse repo rate unchanged.
It is widely expected that the central bank will either cut the key rates or keep them unchanged, amid rising inflationary pressure and a grim economic outlook. RBI Governor Shaktikanta Das addressed the media at 12.00 pm.
Global economic activity has remained fragile said RBI governor Shaktikanta Das. But he said that global financial markets have been buoyant. Transmission and reverse repo tweaks are being expected by the market participants. This will enable more banks to lend to customers.
The MPC had convened for this three-day meeting on August 4. In May, the MPC cut the repo rate by 40 bps to 4 percent, the lowest in maintaining
Inflation Stays High:
Domestic food inflation has remained elevated across economies ever since the Coronavirus outbreak, says RBI governor Shaktikanta Das. But he said that agriculture sector prospects have improved with the good monsoons and rise in Kharif sowing area added Das.
The merchandise exports contracted for fourth consecutive month though the pace of contraction has moderated, says RBI governor Shaktikanta Das.