INTRO
Today, the Reserve Bank of India (RBI) conducted its monetary policy review for the current financial year. Governor Shaktikanta Das addressed the media, announcing that the Indian economy is resilient and has shown great progress despite the COVID-19 pandemic. He further outlined the measures that the RBI has taken to ensure stability and growth in the economy. In this blog post, we will provide a live update on the RBI monetary policy review and what Governor Das had to say.
RBI Governor Shaktikanta Das announced the bi-monthly monetary policy today
Today, Reserve Bank of India (RBI) Governor Shaktikanta Das announced the bi-monthly monetary policy review at a press conference. Governor Das declared that the Indian economy is resilient and strong despite the challenges posed by the COVID-19 pandemic
The RBI governor noted that India's GDP is expected to contract by 7.5% in FY 2020-21, which is lower than the projected contraction of 9.5% by the International Monetary Fund (IMF). This reflects the remarkable resilience of the Indian economy.
Governor Das also highlighted that India's banking system has been largely unaffected by the pandemic. He added that although credit growth has slowed down significantly due to an overall economic slowdown, banks have managed to maintain healthy capital levels and there has been no significant stress in any sector.
The Governor further noted that India's financial markets have also performed well despite the volatility caused by the pandemic. He said that the Indian rupee has remained largely stable against other major currencies and the Indian stock markets have also recovered to pre-COVID levels.
Overall, Governor Das expressed confidence in the Indian economy’s ability to navigate through this difficult period and expressed hope that the country will come out stronger from this crisis.
The repo rate - at which the central bank lends to commercial banks - was kept unchanged at 6 per cent
The Reserve Bank of India (RBI) held its monetary policy review today, and Governor Shaktikanta Das had some good news for the Indian economy. He announced that the repo rate – the rate at which the central bank lends to commercial banks – has been kept unchanged at 6 per cent.
The decision to hold the repo rate was a sign of confidence in the resilience of the Indian economy. Governor Das noted that recent data points to a pick-up in economic activity, while inflation has remained under control. He also highlighted measures taken by the RBI in recent times, such as liquidity support and forbearance on loan repayments, to ensure that businesses could survive the Covid-19 pandemic and the associated economic disruptions.
Governor Das also noted that the outlook for the future remains uncertain, with headwinds from the global economy and the second wave of Covid-19 cases in India likely to have an impact. He thus warned of potential risks to growth and called for greater fiscal support from the government.
Overall, today’s announcement from the RBI suggests that it has faith in the strength of the Indian economy to weather the current crisis. However, in order to ensure a sustained recovery, further action will be required both from the central bank and the government.
The decision of the Monetary Policy Committee (MPC) was unanimous
The Reserve Bank of India (RBI) today announced its sixth bi-monthly monetary policy review for the current financial year. Governor Shaktikanta Das made a statement following the decision of the Monetary Policy Committee (MPC). He stated that the Indian economy is resilient and has the capacity to withstand shocks.
Governor Das also announced that the policy repo rate has been kept unchanged at 4%. He said that the MPC had unanimously decided to keep the policy repo rate unchanged, which is in line with the aim of maintaining an accommodative stance as long as necessary to revive growth on a durable basis.
The Governor further stated that the MPC had noted that the inflation outlook was benign and expected to remain within the target range over the next twelve months. He added that the central bank would continue to monitor inflation developments, including those emanating from evolving demand-supply conditions, and take appropriate action as warranted.
The Governor concluded by emphasizing that the RBI remains committed to using all instruments at its command to revive growth while ensuring that inflation remains within the target range.
The MPC also decided to continue with the accommodative stance as long as it is necessary
The Reserve Bank of India (RBI) held its Monetary Policy Committee (MPC) meeting on Friday, July 10th 2020, to review the state of the Indian economy. At the meeting, Governor Shaktikanta Das addressed the media and noted that despite the economic downturn brought about by the COVID-19 pandemic, the Indian economy is resilient and has shown signs of recovery in certain sectors.
The MPC also decided to maintain an accommodative monetary policy stance in order to provide support to businesses and households, while balancing inflation risks. The MPC also indicated that this stance will continue as long as necessary, depending on incoming data and developments in the macroeconomic situation.
In addition, the RBI also announced that it would conduct open market operations (OMO) worth Rs 40,000 crore to facilitate liquidity in the banking system. This will be done through multiple operations over the coming months and will help support credit flows to individuals, businesses, and other entities.
Overall, Governor Das and the MPC took a positive outlook on the state of the Indian economy, noting that various sectors have shown signs of recovery and that these should be further encouraged through continued monetary support.
RBI governor said that the Indian economy is resilient
The Reserve Bank of India (RBI) Governor Shaktikanta Das has said that the Indian economy is resilient and has the capacity to withstand any adverse shocks. Governor Das was speaking at the bi-monthly monetary policy review by the central bank, during which he announced a reduction in the repo rate by 40 basis points.
The Governor's statement reflects the positive economic outlook of the central bank, despite the current economic crisis triggered by the Covid-19 pandemic. He stated that the Indian economy is on a path of recovery, backed by the various measures taken by the government and the RBI in recent months. He also added that the reforms undertaken by the government, along with continued monetary and fiscal measures, will help to ensure a sustained economic growth in the long run.
The Governor also highlighted the importance of maintaining fiscal discipline and ensuring financial stability, even as efforts are made to provide relief to citizens and businesses during this difficult time. He also urged people to remain vigilant and take necessary precautions to protect themselves from Covid-19.
Overall, the Governor's statement indicates that the RBI is confident about India's ability to rebound from the current crisis and achieve sustainable growth in the long run.
The MPC noted that the global economic activity has remained sluggish
The Reserve Bank of India (RBI) conducted its bi-monthly monetary policy review meeting today, wherein Governor Das noted that the Indian economy is resilient despite global economic headwinds.
The Monetary Policy Committee (MPC) maintained status quo in the repo rate at 5.15%, while the reverse repo rate was held at 4.90%. The MPC noted that the global economic activity has remained sluggish and downside risks to growth have risen significantly since its last meeting in April.
Domestically, the MPC acknowledged the improvement in several high-frequency indicators. It said that private consumption has gained momentum and there has been a notable pick-up in sales of two-wheelers, commercial vehicles and passenger vehicles. The central bank also noted that the recovery in the housing sector has been broad-based.
Inflation for the month of May rose to 3.2% from 2.9% in April, mainly due to an uptick in food prices. The MPC said that it expects inflation to remain below 4% for the second half of 2020-21. In order to address liquidity concerns, the RBI reduced risk weights and capital charges on certain exposures in the housing finance sector.
The RBI also said it will conduct open market operations (OMOs) to ensure an adequate flow of funds in the economy. This measure is expected to reduce volatility in long-term bond yields, thus providing an additional boost to consumption and investment spending.
Overall, the RBI’s latest policy announcement provides a ray of hope for the Indian economy and gives impetus to recovery.
RBI governor said that inflation is expected to remain within the target range of 4 per cent +/- 2 per cent for the next 12 months
The Reserve Bank of India (RBI) Governor Shaktikanta Das delivered a press conference earlier today, presenting the Monetary Policy Review for 2021-22. During his address, Governor Das shared that the Indian economy is resilient and is gradually recovering from the pandemic shock.
He also said that inflation is expected to remain within the target range of 4 per cent +/- 2 per cent for the next 12 months. The Monetary Policy Committee (MPC) unanimously decided to keep the policy repo rate unchanged at 4 percent.
The MPC also noted that the economic activity was gathering momentum, with an improved outlook for growth. Governor Das commented that with both inflation and growth likely to be favourable, RBI will ensure to maintain an accommodative stance for as long as necessary.
In addition, he said that RBI will continue to use all its policy tools to manage liquidity in the system, so as to maintain comfortable conditions. He assured that RBI will use whatever policy measures are needed to support the economic revival and financial stability.
Overall, RBI's Monetary Policy Review has highlighted the positive outlook of the Indian economy and reinforced RBI's commitment to maintaining an accommodative monetary policy stance.