LIVE: RBI says will undo damage inflicted on economy by Covid-19 in FY21-22
RBI Monetary policy LIVE updates: MPC voted unanimously to keep rates unchanged, said RBI governor Shaktikanta Das. Stay tuned for all the LIVE updates
Topics RBI monetary policy | Monetary policy committee meeting | Reverse Repo Rate
BS Web Team | New Delhi
Last Updated at February 5, 2021 13:02 IST
EVENT HIGHLIGHTS
RBI monetary policy live updates: The Monetary Policy Committee (MPC) of the Reserve Bank of India on Friday decided to keep repo rate unchanged at 4 per cent, said Governor Shaktikanta Das. The reverse repo rate stays at 3.35 per cent, he said. On a review of monetary and liquidity conditions it was decided to restore CRR in two phases --- CRR will be raised to 3.5% from March 27 and 4% from May 22.
In his closing remarks, RBI governor Shaktikanta Das said, “going forward the Indian economy is poised to move in only one direction which is upwards. It is our strong conviction backed by forecasts, that in FY22 we will undo the damage that Covid-19 has inflicated the economy. After the chaos and dispair of the year gone by through which we have sailed together, we shall continue to sail ahead.”
The RBI last changed policy rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting interest rate to a historic low.
In a major reform, RBI proposed to provide retail investors access to government bond market, both primary and secondary, directly through the central bank. Retail investors would now have direct access to participate in the G-Sec market.
In his closing remarks, RBI governor Shaktikanta Das said, “going forward the Indian economy is poised to move in only one direction which is upwards. It is our strong conviction backed by forecasts, that in FY22 we will undo the damage that Covid-19 has inflicated the economy. After the chaos and dispair of the year gone by through which we have sailed together, we shall continue to sail ahead.”
The RBI last changed policy rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting interest rate to a historic low.
This was the first meeting of the six-member MPC since Finance Minister Nirmala Sitharaman presented Budget 2021 in the Lok Sabha on February 1, amid the Covid-19 pandemic.
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