RBI keeps repo and reverse repo rates same, predicts GDP growth at 7.8%

By Team Newsable | First Published Feb 10, 2022, 1:53 PM IST

The pandemic has again taken the world economy hostage, said Governor Shaktikanta Das, who announced the monetary policy committee's accommodative stance.

The Reserve Bank of India on Thursday retained the repo and the reserve repo rate unchanged in its first monetary policy review after Union Budget 2022. The present repo rate in 2021 is at 4 per cent, and the reverse repo rate is at 3.35 per cent. This counts as the 10th time RBI maintains the lending rates the same and an accommodative stance amid the Covid pandemic. However, experts expected a shift from the accommodative stance to a neural in this policy meeting.

Shaktikanta Das, the RBI governor, said that the pandemic holds the world economy hostage once again. The Governor added that the Real GDP growth for 2022-23 has been estimated at 7.8 per cent.

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Das stated that the global focus during the pandemic is shifting to a targeted containment strategy, universal vaccination, and booster doses.

The RBI Governor further stated some loss of momentum in economic activity had been reported in some sectors, including automobile and two-wheeler sales, further adding that the renewed surge in global crude oil prices must be closely monitored.

The six-member Monetary Policy Committee, led by Reserve Bank of India Governor Shaktikanta Das, began deliberations on the bi-monthly policy review on Tuesday and announced the results on Thursday.

The meeting of the top bank was initially scheduled for February 7 to February 9 but, it was postponed a day after the Maharashtra government declared February 7 a public holiday to mourn the death of legendary singer Lata Mangeshkar.

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