RBI Monetary Policy Meeting 2022 announcements: The six-member Monetary Policy Committee (MPC) headed by Reserve Bank of India (RBI) Governor Shaktikanta Das kept the repo rate unchanged at 4 per cent, while the reverse repo rate also was kept unchanged at 3.35 per cent. Here’s what the Indian central bank chief announced.
RBI Monetary Policy 2022: The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) kept the repo rate unchanged at 4 per cent for the tenth consecutive time while maintaining an ‘accommodative stance’ as long as necessary, RBI Governor Shaktikanta Das announced on Thursday.
The central bank governor said that the MPC had voted unanimously 5:1 to maintain the accommodative stance and added that the reverse repo rate too was kept unchanged at 3.35 per cent
The Marginal Standing Facility (MSF) rate and bank rate also remained unchanged at 4.25 percent.
The central bank had last revised its policy repo rate or the short-term lending rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting the interest rate to a historic low.
During the speech on the RBI’s key decisions, Das said that India is charting a different course of recovery from rest of the world and the country is poised to grow at fastest pace year-on-year among major economies as per projections by IMF. This recovery is supported by large scale vaccination and sustained fiscal and monetary support.
Speaking on the GDP, Das said that the real GDP growth is projected at 7.8 per cent for the next financial year 2022-23 (FY23). The RBI governor said that real GDP growth of 9.2 per cent in the current fiscal (FY22) will take the economy above the pre-pandemic level.
Speaking about inflation, the RBI governor said that the CPI inflation projection for the current financial year 2021-22 (FY22) is retained at 5.3 per cent while the retail inflation for the next fiscal (FY23) is projected at 4.5 per cent.