RBI Monetary Policy Highlights: Repo Rate Unchanged, GDP Growth Projected At 10.5%
RBI Monetary Policy 2021: Reserve Bank of India Governor Shaktikanta Das-led Monetary Policy Committee (MPC) announced its policy decision today, at the end of a scheduled review that began on Wednesday. The Monetary Policy Committee, in its first post-budget meet, voted unanimously to keep the policy rate unchanged at four per cent. The RBI expects the gross domestic product (GDP) growth to be at 10.5 per cent in the next fiscal year, starting April 2021. RBI Governor Shaktikanta Das said that the economy's growth outlook had improved and that inflation was expected to remain within the central bank's targeted range over the next few quarters. (Also Read: At 10.5%, RBI Pegs Economic Growth Lower Than IMF And Eco Survey )
In a significant structural reform, Mr Das announced that retail investors will get direct access to the government securities market - both primary and secondary - directly through the Reserve Bank of India (Retail Direct). To support the economy amid the COVID-19 crisis, the Reserve Bank slashed its key lending rate i.e. repo rate by 115 basis points since March 2020, following a 135 basis points reduction since the beginning of 2019.