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Central bank of India keeps repo rate at 4%

Based on an assessment of current and evolving macroeconomic conditions, the Reserve Bank of India (RBI)’s Monetary Policy Board (MPC) will maintain its policy repo under the Liquidity Adjustment Facility (LAF). I decided that. ) It does not change at 4.0%. The reverse repo rate under LAF remains unchanged at 3.35%.

As a result, the Marginal Standing Facility (MSF) rate and bank rate will remain unchanged at 4.25%.

The MPC is also “easy” as much as necessary to ensure that inflation remains within its targets, while reviving and sustaining sustainable growth and continuing to mitigate the economic impact of COVID-19. I have decided to continue my stance.

Based on an assessment of current and evolving macroeconomic conditions, the Reserve Bank of India (RBI)’s Monetary Policy Board (MPC) will maintain its policy repo under the Liquidity Adjustment Facility (LAF). I decided that. ) It does not change at 4.0%. The reverse repo rate under LAF remains unchanged at 3.35%.

The MPC said the decision was in line with the goal of achieving the medium-term goal of raising the consumer price index (CPI) inflation rate to 4% within the +/- 2% range while supporting growth. Said.

The MPC’s 2021 monetary policy statement shows that economic activity is gaining momentum, supported by higher vaccination rates, rapid sedation of new infections and elimination of stagnation in demand. increase. -twenty two.

“Tightening global financial conditions also poses risks to global economic activity and India’s outlook. Against this background, MPC needs broader policy support for ongoing domestic recovery. Considering that it is appropriate to wait for the growth signal to settle firmly while paying attention to the dynamics of inflation, the MPC has left the policy repo rate at 4% to restore and maintain growth. We have decided to continue our accommodative stance as long as necessary to do so. It is a lasting foundation and will have an economic impact on COVID-19 while keeping inflation within the target range. We will continue to relax. “

Fiber2Fashion News Desk (RKS)



Central bank of India keeps repo rate at 4%

Source link Central bank of India keeps repo rate at 4%

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