With this, Shaktikanta Das ends his media briefing. Thank you for tuning in to our coverage of the RBI Monetary Policy Committee meet. For more latest news visitwww.deccanherald.com.
RBI Governor ends media brief
RBI projects retail inflation for fiscal ending March 2022 at 5.3% (PTI)
Economy showing signs of emerging from Covid-led ravages: RBI Guv
CPI inflation for current year projected to be 5.3%, says Das
Cereal prices to remain soft owing to record kharif food grain production, says Shaktikanta Das
The momentum of food prices are expected to remain muted, said Das.
CPI inflation to soften going forward, says Das
RBI retains projection for GDP growth at 9.5% in FY22
Capacity utilisation in manufacturing sector assessed to have recovered in Q2: RBI Guv
Further improvement is expected, Das said.
RBI sees food price pressure muted in near future
CPI inflation during July-August lower than anticipated: RBI Guv
Das also said the GDP growth in Q1 at20.1% was close to the MPC's forecast of 21.4%.
RBI MPC: Reverse repo rate unchanged at 3.35%
RBI MPC: Repo rate unchanged at 4% for 8th straight time
RBI governor begins media brief
Shaktikanta Das to address media shortly
The central bank had last revised the policy rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting interest rate to a historic low.
The RBI has been asked by the central government to ensure that the retail inflation based on the Consumer Price Index remains at 4 per cent with a margin of 2 per cent on either side. The Reserve Bank had kept the key interest rate unchanged in its after monetary policy review in August citing inflationary concerns.
Experts expect accommodative stance
Experts are of the view that the central bank will maintain the status quo on policy rates for the eighth time in a row. The policy repo rate or the short-term lending rate is currently at 4 per cent, and the reverse repo rate is 3.35 per cent.
M Govinda Rao, Chief Economic Advisor of Brickwork Ratings, said with the consumer price inflation easing from 5.59 per cent in July to 5.3 per cent in August, improved supply situation on the back of the pandemic-led restrictions being relaxed, and capacity utilisation still in the recovery mode, there is no immediate pressure on the MPC to either alter interest rates or change the accommodative stance.
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