Given the rise in the spread of the coronavirus (Covid-19) infection and imposition of fresh localised lockdowns, the Reserve Bank of India’s (RBI’s) monetary policy committee (MPC) on Wednesday decided to leave the key repo-rate unchanged at 4 per cent. It also maintained the policy stance as ‘accommodative’ to keep the liquidity taps running in the economy. “The recent surge in infections, however, imparts greater uncertainty to the outlook,” RBI governor Shaktikanta Das said today, setting the stage for the financial year of 2021-22 (FY22). April policy was the first bi-monthly MPC meeting of the new fiscal year. “Localised and regional lockdowns could dampen the recent improvement in demand conditions and delay the return of normalcy,” he said.
A clear commitment to liquidity infusion through the G-Sec Acquisition Programme (G-SAP) and other growth-enhancing measures announced by the RBI on Wednesday led bankers to give a thumbs-up to the first policy review of the new fiscal. The RBI policy statement is a clear commitment to assuage uncertainties in the market through guaranteed, continued liquidity support and explicit guidance to navigate through the current COVID surge, the duration of which is uncertain, SBI s Chairman Dinesh Khara said. Welcoming other measures such as co-lending with non-banks being classified as priority sector lending, Khara termed the policy statement as one that leaves a clear imprint on growth .
RBIâs policy stance very balanced: India Inc. After the RBI announced that it is maintaining the status quo with regard to its policy stance, India Inc. has reacted very positively to the developments. Here are some of the reactions.
Apr 7, 2021
Despite a pause in rates, RBI s latest policy does enough to boost liquidity and revive growth engines.
Image: Sanjay Rawat
The Reserve Bank of India today announced its monetary policy, wherein it kept the repo rate unchanged at 4%, and retained its accommodative policy stance.
India Inc. has reacted very positively to the developments. Here are a few of such reactions.