Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    SIDBI signs MoU with HDFC Bank for providing financial solutions to MSMEs

    June 9, 2023

    PhonePe Group launches Account Aggregator services

    June 9, 2023

    TPG backed InsurTech PolicyBoss closes Series B with India SME Investments amongst a consortium of investors

    June 9, 2023
    Facebook Twitter Instagram
    BFSINXT
    Twitter YouTube LinkedIn
    • Banking
      • SME /Wholesale Banking
      • Retail
      • HR
        • Wholesale
      • Rural & Agri
    • NBFC
      • Customer Experience
      • Retail
      • Digital
    • Insurance
      • Life
      • General
      • InsurTech
    • Fintech
      • Payments
      • Lending
      • Wealth/PF
      • Neo-Banking
    • Policy
      • RBI
      • IRDAI
      • SEBI
      • Government
    • Financial Services
      • Securities
      • AMC
    • About us
      • Editorial Team
      • Our Advisory Panel
      • Get In Touch
    BFSINXT
    Home » RBI Monetary Policy: Maintains status quo and accommodative stance
    RBI

    RBI Monetary Policy: Maintains status quo and accommodative stance

    Our efforts over the past one year and nine months have given us the confidence and a head-start to face the challenges that lie ahead, Governor Das said.
    December 8, 20212 Mins ReadBy editor
    Twitter LinkedIn WhatsApp

    The Reserve Bank of India (RBI)’s Monetary Policy Committee on December 8 decided to keep the benchmark report and reverse repo rates unchanged as it thought about uncertainty brought by the Omicron variant and rising input cost pressures.

    The repo rate was unchanged at 4 percent, five members voted to continue with accommodative stance while Jayanth R Varma again voted against for the third time. The repo reverse rate remains unchanged at 3.35 percent.

    The MPC in its resolution though it was appropriate to wait for growth signals to become solidly entrenched while remaining watchful on inflation dynamics.

    RBI Governor, Shaktikanta Das said, we need to be persevering, patient and persistent in our efforts. We also need to be aware, alert and agile to the new realities confronting us. Our efforts over the past one year and nine months have given us the confidence and a head-start to face the challenges that lie ahead, he added.

    On Growth, the Indian economy grew by 20.1 percent while in the second quarter at 8.4 percent in this financial year. The second wave had interrupted the gaining traction but recovery is not yet strong enough to be self-sustaining and durable. Further the recover in domestic economic activity is turning increasingly broad based, with the expanding vaccination coverage, and decline in fresh Covid cases.

    The MPC expects the projection for real GDP growth is retained at 9.5 percent in FY22 consisting of 6.6 percent in Q3 and 6 percent in Q4FY22. Real GDP growth is projected at 17.2 percent for Q1FY23 and 7.8 percent for Q2FY23.

    On inflation outlook, Das said, inflation, while currently within India’s comfort zone of 4 (+/-2)%, is expected to inch higher as a positive base effect wanes. Persistence of high core inflation since June 2020 is an area of policy concern, Das said.

    Governor highlighted that cost push pressures from high industrial raw material prices, transportation costs, and global logistics and supply chain issues continue to impinge on core inflation.

    On liquidity, the central bank will continue to manage liquidity in a manner which entails economic recovery and financial stability. RBI will continue to use variable rate reverse repo operations to absorb funds, and 14 day VRRRs will remain the preferred duration to absorb liquidity even though the amount for auction has been raised.

    RBI
    Previous ArticleSBI taps Intellect Design Arena for its Digital Wealth Transformation
    Next Article RBI to push UPI for feature phones
    editor

    Related Posts

    AU Small Finance Bank receives Authorised Dealer Category-I license from RBI

    May 4, 2023

    CRIF receives the RBI license to operate as NBFC account aggregator

    April 5, 2023

    GSTN gets included as a Financial Information Provider under Account Aggregator Framework

    November 23, 2022

    RBI to run Nation-wide Finanical Services Awareness Programme in November 2022

    November 3, 2022

    Leave A Reply Cancel Reply

    Recent Posts

    • SIDBI signs MoU with HDFC Bank for providing financial solutions to MSMEs
    • PhonePe Group launches Account Aggregator services
    • TPG backed InsurTech PolicyBoss closes Series B with India SME Investments amongst a consortium of investors
    • DMI Finance & Ampverse Form Joint Venture to Unleash the Power of Esports in India
    • Cashfree ties-up with Tazapay to offer cross border payments to Indian exporters

    Recent Comments

    No comments to show.
    Demo
    NBFC's

    L&T Finance launches Warehouse Receipt Financing

    April 1, 2023

    L&T Finance adds 29 lakh customers in Micro Loans biz between April 2022 to January 2023

    March 10, 2023

    PLANET App by L&T Financial Services Crosses 1.5 Million Downloads

    January 7, 2023

    SIDBI enters Co-lending Space for Unsecured Loans to MSMEs, partners with Ambit Finvest

    December 31, 2022
    New Policy
    Policy

    GSTN gets included as a Financial Information Provider under Account Aggregator Framework

    November 23, 20220By Bfsinxt Desk

    The RBI said, with a view to facilitate cash flow-based lending to MSMEs, it has been decided to include Goods and Services Tax Network (GSTN) as a Financial Information Provider (FIP) under the Account Aggregator (AA) framework.

    RBI to run Nation-wide Finanical Services Awareness Programme in November 2022

    November 3, 2022

    RBI to soon operationalise CBDC Wholesale (e₹-W) Pilot

    November 1, 2022

    RBI launches दक्ष (DAKSH) – Reserve Bank’s Advanced Supervisory Monitoring System

    October 8, 2022
    • Twitter
    • YouTube

    Subscribe to Updates

    Get the latest creative news from SmartMag about art & design.

    BFSINXT
    Twitter YouTube LinkedIn
    © 2023 bfsinxt.com.

    Type above and press Enter to search. Press Esc to cancel.