RBI Monetary Policy on expected lines,
says veteran banker

RBI Monetary Policy 2021
The RBI policy announcements are on expected lines in terms of holding of policy rates and maintaining an accommodative stance. The policy has perfectly complemented the Union Budget in supporting the growth impulses. Extending the On Tap TLTRO to NBFCs and incentivizing lending to new MSME borrowers will support lending to these sectors. Unveiling of structural reform of retail participation in G sec market along with extension of HTM limit relaxation will aid smooth completion of Govt. borrowing programme. The normalization of CRR in a phased manner would smoothen the liquidity absorption process.
-PNB MD & CEO CH. S. S. Mallikarjuna Rao
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India's central bank keeps repo
rate unchanged at 4%

Thesynergyonline Banking Bureau

NEW DELHI, FEBRUARY 05 : The Reserve Bank of India (RBI) announced its monetary policy on Friday after a three-day policy meet. The central bank kept the repo rate unchanged at 4 per cent, while the reverse repo rate also was kept unchanged at 3.35 per cent. RBI Governor Shaktikanta Das said that the decision was taken unanimously.The central bank had slashed the repo rate by 115 basis points since late March 2020 to support growth. This is the fourth time in a row that the Monetary Policy Committee (MPC) decided to keep the policy rate unchanged.

The central bank also sees FY22 GDP growth at 10.5 per cent.

The RBI governor said that the inflation has eased below the level of 6 per cent. The outlook on growth has also improved significantly. He also said that the MPC judged that need for the hour is to continue supporting the growth. He added that the signs of recovery have strengthened further and list of normalising sectors is expanding .