MPC in 2 minutes: Here're the key development and regulatory steps

The six-member MPC kept interest rates on hold, but said it will keep its stance accommodative to support the government's huge borrowing programme

Key decisions

• The MPC unanimously decided to keep the repo rates unchanged at 4% and an accommodative stance 

• Reverse repo rate under LAF unchanged at 3.35%, while the MSF and bank rate remained at 4.25%

• CPI inflation has been projected at 5.2% for 2020-21; 5.2% for H1FY22, and 4.3% for Q3FY22; the real GDP has been projected to grow at 10.5 per cent in FY22

Development & regulatory steps
 

• NBFCs can now access funds from banks under the on-tap TLTRO scheme for incremental lending to stressed sectors

• Decided to restore the CRR in two phases. Banks have to maintain CRR of 3.5%