The six-member Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) headed by Governor Shaktikanta Das has kept the repo rate unchanged for the eighth time in a row. The repo rate will remain at 4 percent. Apart from this, there has been no change in the reverse repo rate from RBI. Like last time, this time also the reverse repo rate will remain 3.5 percent. At the same time, the central bank retained the GDP growth forecast for FY22 at 9.5 percent.
Six-member monetary policy committee meeting
The statement came after a three-day review meeting of the six-member Monetary Policy Committee (MPC) headed by Governor Das that began on Wednesday. Voted 5-1 to maintain the accommodative stance for as long as necessary, while ensuring that inflation remains within the set target. In the press conference, Governor Shaktikanta Das said that food inflation is expected to remain low in the coming month due to record production of food grains. Efforts to control cost-push pressures through a calibrated reversal of indirect taxes on fuel could contribute to a more sustained lowering of inflation and strengthen inflation expectations.
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$400 billion export target almost met – Governor
The Governor said that the central bank announced the extension of On-Tap Special Long-Term Repo Operation (SLTRO) for Small Finance Banks (SFBs) till December 31, 2021. RBI Governor said that due to the strong performance of the service sector sectors Simultaneously, the contact intensive service is also expected to pick up gradually. Aggregate demand was also supported significantly by exports, which stood at over $30 billion for the seventh consecutive month in September. Which reflects strong global demand and policy support. This augurs well for meeting our export target of $400 billion during FY 2022, Das said.
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