RBI MPC Keeps Repo Rate Unchanged At 4%

RBI MPC Keeps Repo Rate Unchanged At 4%Watchful of evolving situation and remain committed to bring it back to normal in a gradual and non-disruptive manner

  • MPC voted unanimously to maintain status quo on policy repo rate
  • Decided with a 5-1 majority to maintain accommodative stance
  • Stance to remain ‘accommodative’ as long as necessary.
  • Recovery of Indian economy is gaining traction
  • India in a much better place today on vaccination than last meeting
  • Growth impulses seem to be strengthening
  • Inflation trajectory turning out to be more favourable than anticipated
  • Core inflation however remains sticky
  • Evolving situation requires close vigilance
  • Aggregate demand seems improving, but slack still remains
  • Contact intensive sectors still lagging
  • Efforts to contain cost push pressures through a calibrated reversal of fuel taxes could contribute to lowering of inflation
  • Projection for real GDP growth retained at 9.5% for FY22Includes 7.98% in Q2, 6.8% in Q3, 6.1% in Q4
  • Rural demand is expected to get impetus from continued resilience of agriculture sector, record production of Kharif food grains
  • Edible oils, fuel, LPG and medicine prices drive inflation
  • Decline in vegetable and cereal prices, sharp deceleration in gold prices and muted home prices help
  • Cereal prices expected to remain soft
  • Unseasonable rains and adverse weather events are key upside risks to vegetable prices
  • CPI inflation projected at 5.3% for FY22; 5.1% in Q2, 4.5% in Q3 and 5.8% in Q4 with risks broadly balanced
  • Watchful of evolving situation and remain committed to bring inflation back to normal in a gradual and non-disruptive manner
  • G-SAP has been successful in addressing market concerns
  • Total liquidity injected into the system was Rs 2.37 lakh crore in the first 6 months of this year against the total of Rs 3.31 lakh crore injected in the full year last year
RBI MPC Keeps Repo Rate Unchanged At 4% via @goldsilverrepor
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