The Reserve Bank of India announced on Friday that the repo rate and reverse repo rate would remain unchanged. The repo rate was last changed in May 2020, when it was reduced to four per cent. The reverse repo rate remains 3.5 per cent.
Speaking at the end of the three-day meeting of the RBI's bi-monthly monetary policy meeting, RBI Governor Shaktikanta Das noted the monetary policy committee had unanimously decided to keep status quo on repo rate.
He emphasised that the MPC would keep its stance accommodative as long as necessary to support the economic recovery.
Das admitted the core inflation scenario remains "sticky". He noted elevated prices of crude oil and other commodities were adding to input costs.
Financial Express quoted him as saying "aggregate demand was improving in India but 'slack still remains'".
Das noted, "The recovery of Indian economy is gaining traction; it is in better shape than last MPC meeting. Growth impulses strengthening, inflation trajectory favourable than anticipated... [we] hope to sail towards normal times, due to resilience of economic fundamentals of our economy,” ANI reported.
Das emphasised the RBI is positive about the 9.5 per cent GDP growth estimate for FY22, Financial Express reported. “The projection for real GDP growth is retained at 9.5 per cent for FY 2021-22. This consists of 7.9 per cent in Q2, 6.8 per cent in Q3 and 6.1 per cent in Q4 of 2021-22. Real GDP growth for Q1 of FY 2022-23 is projected at 17.2 per cent,” ANI quoted him as saying.