RBI Monetary Policy LIVE | The RBI’s Monetary Policy Committe (MPC) has decided to continue with accomodative stance until necessary to mitigate impact of COVID-19. The Marginal Standing Facility (MSF) rate and bank rates remain unchanged at 4.25 percent. Reverse repo rate also remains unchanged: RBI Governor Shaktikanta Das
RBI Monetary Policy LIVE | The greater the difficulty, more glory in surmounting it. Real GDP contraction at 7.3 percent for FY21. Abhishek Kothari: Dent on urban demand and spread of COVID-19 in rural areas will impact GDP growth negatively. Inflation print for April at 4.3 percent has brought relief: RBI Governor Shaktikanta Das
RBI Monetary Policy LIVE | Core price pressures may remain elevated. Consumer inflation pass through may not be high due to tapered demand. The second wave has been highly transferable to rural and semi-urban areas. Impact on economic activity is expected to remain contained due to lower restrictions. Urban demand, in high frequency indicators, recorded sequential moderation in April-May 2021. Domestic monetary and financial condition remain accomodative for economic recovery. Rebound in global trade is taking place. Global demand condition is expected to improve with fiscal stimulus and higher vaccination: RBI Governor Shaktikanta Das
RBI Monetary Policy LIVE | Considering all factors such as coronavirus pandemic, PMI data, companies adapted to pandemic working and expectation of normal monsoon, real GDP is seen at 9.5 percent in FY21-22. CPI inflation is seen at 5.1 percent FY21-22.: RBI Governor Shaktikanta Das
RBI Monetary Policy LIVE | RBI Governor Shaktikanta Das: Enhanced and targeted policy support is needed for exports. Rural demand is expected to remain strong due to normal monsoon forecast. The Real GDP is estimated at 9.5 percent in FY21-22, against the 10.5 percent forecast earlier. Of this, Q1 is expected to be 18.5 percent (vs 26.2% forecast earlier), Q2 – 7.9 percent (8.3 percent), Q3 – 7.2 percent (5.4 percent), Q4 – 6.6 percent (6.2 percent).
CPI inflation is projected at 5.1 percent for FY21-22.Inflation expectations for Q1 is 5.2 percent, Q2 – 5.4 percent, Q3 – 4.7 percent, Q4 – 5.3 percent.
Adequate system level liquidity has been ensured and targeted liquidity to stressed entities have been provided.
The CPI is estimated at 5.1 percent in FY21-22, this would be 5.2 percent in Q1, 5.4 percent – Q2, 4.7 percent – Q3, 5.3 percent – Q4.
Money aggregates (M3) grew by 9.9 percent year-on-year (YoY) in May 2021, while bank credit grew by 6 percent YOY in May 2021. Focus of RBI is turning to equitable distribution of liquidity
RBI Monetary Policy LIVE | RBI Governor Shaktikanta Das: Focus of RBI is turning to equitable distribution of liquidity. We shall continue with proactive and pre-emptive approach of transmission to return economy to growth. Rs 36,545 crore liquidity infused in the industry. Another operation under government securities 1.0 (G-sec) for Rs 40,000 crore worth of purchase will be conducted. Further, G-SAP 2.0 worth Rs 1.2 lakh crore will be taken in the second quarter FY22 to support the market. The RBI is actively engaged in forex market. Strength of financial system is crucial for fighting against pandemic.
RBI Monetary Policy LIVE | RBI Governor Shaktikanta Das: The RBI is actively engaged in forex market. Strength of financial system is crucial for fighting against pandemic. The exchange rate is stable despite global spillovers. Forex reserves have risen to $598 billion. We are within striking distance of reaching $600 billion on Forex Reserves.
RBI Monetary Policy LIVE | RBI Governor Shaktikanta Das: The RBI is fully committed to enable the environment to preserve financial stability. We are opening a Rs 15,000 crore On-Tap Liquidity Window at repo rate for contact intensive sectors. This will provide additional lending to the hospitality, bus operators, tourism, salons, aviation ancillary services.
News Source:- Moneycontrol