Economy Inn – RBI Announces Monetary Policy, No Change In Repo Rate For The Seventh Time In A Row – The Reserve Bank has not made any changes in key interest rates. On Friday, Reserve Bank Governor Shaktikanta Das announced the new monetary policy. The Central Bank of the country has kept the repo rate and reverse repo rate at the old rate for the seventh time in a row.
Economy Inn – Rbi Announces Monetary Policy, No Change In Repo Rate For The Seventh Time In A Row
The Reserve Bank has kept the repo rate at 4 percent, while the reverse repo rate has been kept at 3.35 percent. The rate at which commercial banks take loans from the Reserve Bank is called repo rate. Whereas reverse repo rate is the rate at which the Reserve Bank gives interest to commercial banks for the amount deposited with them.
No change in repo rate
Since May 2020, the repo rate in the country has remained at 4 percent. According to the Reserve Bank, this has been done so that commercial banks can take loans from the Reserve Bank at a lower rate and give loans to the consumer at a cheaper rate, so that industrial-business activities can be accelerated in the country.
Economy coming out of the clutches of second wave
Reserve Bank Governor Shaktikanta Das said that the economy is slowly getting free from the effects of the second wave of Corona. He said that the demand scenario in the country is improving but more improvement is needed.
Shaktikanta Das said that there is a need to be alert towards the third wave of Corona. RBI has retained the GDP growth rate forecast for the financial year 2021-22 at 9.5 per cent.
He said that according to the estimates of the Monetary Policy Committee, economic activities have increased in the country in June and the economy is coming out of the effect of the second wave of Corona.