The Monetary Committee of the Reserve Bank of India (RBI) has given its decision today amid the frightening look of the new form of Korana virus ‘ Omicron ‘. RBI has announced no change in the repo rate for the ninth time in a row on Wednesday.
The repo rate is stable at 4 per cent. Of the six members of the Monetary Policy Committee, five had supported keeping the policy rate at the current level. This means that your bank EMI will not reduce. Actually, after the reduction in the repo rate, there is pressure on the banks to reduce the interest rate. If banks cut the interest rate, then the EMI also comes down.
What did Das say on petrol and diesel?
Das said the Reserve Bank will continue to take a lenient stance to bring the growth rate back on track and maintain it on a sustainable basis. RBI will allow banks to infuse capital in foreign branches, repatriating profits without their prior permission. Crude oil prices softened in November, which will ease the pressure on cost levels in the domestic market. At the same time, he expressed hope that the reduction in tax rates on the prices of petrol, diesel should help the consumption demand.
Indian economy comes out of biggest slump
Regarding the Indian economy, he said that the Indian economy has come out of the biggest decline, we are better prepared to deal with the Kovid-19 epidemic. Governor Das says that economies are opening up globally, the level of activity is reaching pre-pandemic levels. He said that the Indian economy is growing faster than other countries on the path of recovery but cannot escape the developments happening at the global level.
Real GDP growth forecast at 9.5% in 2021-22
Reserve Bank of India (RBI) Governor Shaktikanta Das said that the real GDP growth forecast for 2021-22 has been retained at 9.5%. However, the RBI has reduced the GDP growth forecast for the third quarter of the fiscal year 2022 to 6.6 percent from the earlier 6.8 percent. Along with this, the GDP estimate for the fourth quarter of Fiscal Year 2022 has been reduced from 6.1 percent to 6 percent.
Special Things
- Regarding inflation, Das said that the RBI has retained the Consumer Price Index (CPI) inflation estimate at 5.3% in 2021-22.
- Reserve Bank of India (RBI) Governor Shaktikanta Das said that the real GDP growth forecast for 2021-22 has been retained at 9.5%.
- RBI Governor Das says the central bank will continue to manage liquidity to maintain financial stability.
- Reserve Bank of India Governor Shaktikanta Das has said that the repo rate will remain at 4% with no change.
- The reverse repo rate will also remain unchanged at 3.35%. The Marginal Standing Facility (MSF) rate and Bank Rate will remain unchanged at 4.25%.
- The Reserve Bank Governor said that in order to bring down the inflation rate on a sustainable basis, it was decided to cut the excise duty on petrol, diesel.
- Governor Das while announcing the monetary policy said that price stability is the core principle of RBI as it promotes growth, stability.
Decision to keep repo rate stable at 4 percent in 9th consecutive meeting
In such a situation, now the Reserve Bank not changing the repo rate means that banks will not cut the interest rate of the loan. Let us tell you that in the 9th consecutive meeting, RBI has decided to keep the repo rate stable at 4 percent. RBI had changed the policy rate on May 22, 2020 with the intention of boosting demand and brought it to a record low level. At the same time, the reverse repo rate is at 3.35 percent.
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
