Get All Access for $5/mo

RBI Maintains Status Quo On Repo & Reverse Repo Rates RBI governor Shaktikanta Das said the GDP growth is projected at 10.5 per cent for the next fiscal

By Debarghya Sil

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Reserve Bank Of India/ Twitter
Shaktikanta Das, Governor, Reserve Bank of India

The Reserve Bank of India (RBI) governor Shaktikanta Das in his first press conference post the Union Budget 2021 said the Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at the existing 4 per cent to spur the growth of the country in the backdrop of the ongoing pandemic.

The RBI governor announced that the decision was taken unanimously and said that the reverse repo rate too was kept unchanged at 3.35 per cent. This was the fourth time in a row that RBI left interest rates unchanged.

"It (MPC) also unanimously decided to continue with the accommodative stance of monetary policy as long as necessary—at least through the current financial year and into the next year— to revive growth on a durable basis and mitigate the impact of COVID-19, while ensuring that inflation remains within the target going forward," he added.

The governor said the GDP growth was projected at 10.5 per cent for the next fiscal.

He also took a note that for the first time during the COVID-19 period, inflation has eased below the upper tolerance level of 6 per cent.

Commenting on the budget, he said, "The Union Budget 2021-22 has provided a strong impetus for revival of sectors such as health and well-being, infrastructure, innovation and research, among others. This will have a cascading multiplier effect going forward, particularly in improving the investment climate and reinvigorating domestic demand, income and employment."

The banker's bank had slashed the repo rate by 115 point basis in late March 2020 to 4 per cent, a 19-year low, to cushion the country's economy which was showing early signs of going south. India was one of the worst hit countries by the pandemic with its economic growth contracting to 23.9 per cent, lowest in 24 years, in the first quarter of 2020-21 (April - June).

Debarghya Sil

Entrepreneur Staff

Former Correspondent

Business News

Wells Fargo Reportedly Fired More Than a Dozen Employees for Faking Keyboard Activity

The bank told Bloomberg that it "does not tolerate unethical behavior."

Innovation

The Key to Real Innovation Is Cross-Pollination — Here Are 10 Ways to Implement It in Your Business

Transform your business with this unique approach to sparking innovation.

Growth Strategies

AMD Confident About Increasing Market Share In India

The semiconductor company is positive about the business environment in India on the back of growing investments in data centers and AI, Cloud repatriation, as well as technology refresh taking place across companies on both server side and client devices

Side Hustle

These Are the 10 Best Online Side Hustles of 2024 to Earn Extra Cash

From teaching to testing artificial intelligence, these side hustles can earn you quick cash from home.

Leadership

Tech Overload Will Destroy Your Customer Relationships. Are You Guilty of Using Too Much Tech?

Technology's value in our world is undeniable. However, there can be a point where it is ineffective and possibly counterproductive. See where it can negatively impact your product, brand, and business.

Devices

Clean up Your Mac Software with This $12 Family Plan, for One Week Only

Save on a program that can optimize your company's Mac computers.