RBI Monetary Policy Highlights: Repo Rate Steady, Growth Projection Retained At 10.5%

Reserve Bank of India (RBI) Governor Shaktikanta Das announced the policy decision today, at the end of the scheduled review of the Monetary Policy Committee (MPC) that began on Monday, amid a surge in coronavirus cases and imposition of new restrictions to curtail the second wave of COVID-19 in India. In its first bi-monthly monetary policy review for the new financial year 2021-22, the Monetary Policy Committee, voted unanimously to keep the policy rate unchanged at four per cent. (Also Read: RBI Keeps Key Rates Unchanged, Says Recovery "Uncertainty" Due To Covid )

As the country stares at another looming economic crisis, led by the steep rise of active COVID-19 cases, the central bank has maintained its status quo on key policy rates for the fifth time in a row. It will maintain its accommodative stance as long as necessary to sustain growth on a durable basis and to mitigate the impact of COVID-19 on the economy. The RBI targeted retail inflation at 5.2 per cent in the first half of the current fiscal and mandated to keep it within the range of two per cent - six per cent band with four per cent as a medium-term target.

The RBI Governor announced a secondary market government securities acquisition programme - G-SAP 1.0, under which it would commit upfront to a certain specific amount of open market bond purchases. The RBI retained its gross domestic product (GDP) growth projection at 10.5 per cent in the current fiscal 2021-22. (Also Read: GDP Growth Projection For FY 2021-22 Remains Unchanged At 10.5%: RBI )

Even as the country has registered more than 8.4 crore COVID-19 vaccine doses cumulatively, as of April 6, yet, partial lockdown in some states and night curfew in the national capital have been announced to prevent the spread of the virus. 
 

Here are the key highlights from today's RBI Governor Shaktikanta Das-led Monetary Policy Committee meeting: