Mumbai, February 5: RBI kept the reverse repo and repo rate unchanged in first RBI monetary policy decision after the presentation of the Union Budget on Friday. Reverse repo rate unchanged at 3.35 percent and repo rate remained at 4 percent. Economists had expected the MPC to maintain repo rate and reverse repo rate at their current levels.
Shaktikanta Das, RBI governor said, "2020 tested our endurance, while 2021 is setting the stage for a new economic era in our history." RBI Monetary Policy at 10 am Today: First Policy Decision After Union Budget; Here's What to Expect.
Das further added that GDP growth is projected at 10.5 percent in the financial Year 2021-22.
RBI maintains status quo on Repo & reverse repo rate:
MPC (Monetary Policy Committee) voted unanimously to leave policy repo rates unchanged at 4%: RBI Governor Shaktikanta Das pic.twitter.com/PUDdF25OOe
— ANI (@ANI) February 5, 2021
Among some of the other major announcements made today are- the projection of CPI (consumer price index) inflation has been revised to 5.2 percent for Q4 of the current financial year.
Sharing an optimistic piece of information, he said, "Consumer confidence is reviving and business expectations of manufacturing, services and infrastructure remain upbeat. The movement of goods and people and domestic trading activities are growing at a robust pace."
Towards the end of last year, RBI in its bulletin said that as economic activities gather momentum and strive to get back to pre-Covid levels, the Indian economy is reflating at a pace higher than most predictions.