RBI Monetary Policy Committee Meeting- Key Highlights

Key Decisions by the committee

• The committee has decided to keep the repo rate unchanged at the 4 percent.
• It has decided to continue its accommodative stance in accordance with the necessities in the current financial year.
• The accommodative stance will continue into the next financial year as well so as to revive the growth and to keep inflation within the set target.
• Marginal standing facility rate is also unchanged at 4.25%.
• The committee has also kept the bank rate unchanged at 4.25 percent.
• The reverse repo rate is also same at 3.35 percent as earlier.

Highlights

• The committee highlights that, the Inflation in last two months was better than expected. Inflation has come down to the Upper tolerance level of 6 percent for the first time since covid-19 pandemic breakdown.
• Committee also highlights that, factors that could change the food inflation trajectory include the Good Rabi Crop, Huge Kharif harvest, huge winter supplies of vegetables and soft poultry demand.
• The committee has projected the real GDP growth at 10.5 percent in 2021-22.