RBI monetary policy: GDP forecast trimmed to 9.5%, Repo rate unchanged at 4%

Reserve Bank of India (RBI) today announced its bi-monthly monetary policy review as RBI Governor Shaktikanta Das read out the Monetary Policy statement. RBI has projected India's GDP growth at 9.5% for the ongoing financial year of 2021-2022.

The Monetary Policy Committee has kept policy rates unchanged once again at its bi-monthly review. The Repo rate has been maintained at 4% while the reverse repo rate is at 3.35%. Policy stance has been maintained as accommodative by the central bank in an effort to maintain liquidity in the system as the country continues to recover from the Covid-19 pandemic and its economic implications.

The foremost endeavour of RBI through the pandemic has been to create conducive financial conditions, so that fin institutions and market continue to function normally, said RBI Governor Das. 

Reserve Bank of India maintains an accommodative monetary policy stance in its bi-monthly monetary policy review in June.
RBI's borrowing rate Reverse Repo Rate has been kept unchanged at 3.35%, says RBI Governor Shaktikanta Das.

India's real GDP growth is projected at 9.5% in FY22, said RBI governor Shaktikanta Das.

Covid-19 second wave a cause for concern for the economy. NSO data released on May 31 pegged India's GDP contraction in FY21 at 3%, he said.

Smaller towns and cities more affected by Covid second wave. Rural demand expected to remain robust given the expectation of a good monsoon, said guv Shaktikanta Das.

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