Monetary policy highlights: Growth not at pre-pandemic level yet, says RBI

The Reserve Bank of India's (RBI's) six-member monetary policy committee (MPC), headed by Governor Shaktikanta Das, kept the key lending rate — repo rate unchanged at 4 per cent for the eighth time in a row. Reverse repo rate remained unchanged at 3.5 per cent. The central bank retained FY22 GDP growth forecast at 9.5 per cent.

The MPC voted 5-1 to retain the accommodative stance as long as necessary to sustain growth on a durable basis, while ensuring that inflation remains within the target, RBI Governor Shaktikanta Das said on Friday.

Key highlights from RBI governor Shaktikanta Das' address:

— RBI will maintain accomodative stance

— Repo rate, reverse repo rate maintained at 4% and 3.35% respectively

— RBI Stops G-SAP Operations

It will, however, continue to conduct open market operations as needed.

— RBI has stepped up the pace of variable rate reverse repo auctions.

— The RBI has maintained the FY22 GDP growth forecast at 9.5%.

— CPI inflation is projected at 5.3% for the current fiscal year.

— Internal Ombudsman for NBFCs

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