RBI continues its accommodation stance
For the nineth bimonthly policy review in a row, the RBI continued its accommodation stance and kept key policy rates unchanged.
image for illustrative purpose
Mumbai, Feb 10 For the nineth bimonthly policy review in a row, the RBI continued its accommodation stance and kept key policy rates unchanged.
Monetary Policy Committee, which decides the joy policy rates, left repo rate unchanged at 4.00 per cent and reverse repo rate retained at 3.35
Voting was 5-1 on maintaining accommodative MPC stance.
MSF, bank rate were kept unchanged at 4.25 per cent.
MPC retained accommodative stance as long as necessary. Accommodative monetary to support economic recovery going ahead, it was felt.
Continued policy support warranted for durable recovery, the MPC, chaired by the RBI governor, Shaktikanta Das, said.
Surveys show good progress in winter crop sowing. There is some loss of momentum in near-term economic growth.
FY23 GDP growth seen at 7.8 per cent whereas Jul-Sep GDP growth was seen 7.0 vs 7.8 per cent earlier.
Oct-Dec GDP growth seen 4.3 per cent, whereas Apr-Jun GDP growth seen 17.2 per cent earlier. Jan-Mar FY23 GDP growth seen 4.5 per cent.
Domestic growth factors are gradually improving as India's recovery is supported by fiscal, monetary support.
India recovery is also supported by vaccinations. The country is set to grow at fastest pace among major econ as per IMF.
India charting different course of recovery India poised to grow at fastest pace among major economies. There is loss of momentum in economic recovery. Demand for contact-intensive services still muted.
RBI's surveys show capacity use is rising.
Govt thrust on capex, exports expected to aid demand policy will provide impetus to invest activity.
CAD seen contained well below 2 per cent of GDP FY22. CAD to be well below 2 per cent of GDP in current financial year.
High oil prices, non-oil import widened merchandise trade deficit. To extend on-tap liquidity window for healthcare till Jun 30. To extend on-tap liquidity window for contact-intensive Jun 30. RBI will insulate Indian economy from global spillovers.
CPI inflation was seen at 5.3 per cent in FY 22. CPI inflation seen at 5.7% in Jan-Mar Core inflation near tolerance testing levels.
Ghe apex bank expects some softening of core inflation. Softening food prices providing relief on inflation front.
Pandemic holds world econ hostage once again as inflation at multi-decade high in several countries, said RBI governor.
Record infections denting pace of econ activity, he added.
Emphasis shifting to targeted containment strategies, he said, adding, merging economies vulnerable to global spillovers.
Emerging economies continue to face global spillover risks.
