The RBI has once again come out with a proactive set of announcements to revive the economic growth amid a surge in the second wave of pandemics. The decision of keeping the repo rate unchanged along with maintenance of accommodative stance is on expected lines and necessary to mitigate the growing uncertainty and inflation concerns. The Reserve Bank of India (RBI) Shaktikanta Das kept the repo rate unchanged at 4%, retains accomodative stance to continue supporting the revival of the Indian economy. RBI has maintained its status quo on policy while reiterating that this stance will continue as long as necessary to support growth and help an economy battling for revival. Announcing the outcome of the second bi-monthly Monetary Policy Committee (MPC) Reserve Bank of India (RBI) Governor Shaktikanta Das kept interest rates unchanged and retained an accommodative stance for the sixth consecutive time. The RBI Governor announced the MPC's decision after it concluded its three-day meet on 4 June. The RBI also trimmed the FY 2021-2022 GDP forecast to 9.5% from 10.5%. The RBI had kept the repo rate unchanged at 4% and the reverse repo rate at 3.35% in the April policy review.
The Monetary Policy Committee (MPC) met on 2nd, 3rd, and 4th, June 2021 and took stock of the evolving macroeconomic and financial conditions as well as the impact of the second wave of the pandemic. Based on its assessment, the MPC voted unanimously to maintain the status quo, keeping the policy repo rate unchanged at 4 percent. The MPC also decided unanimously to continue with the accommodative stance as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within the target going forward. The marginal standing facility (MSF) rate and the bank rate remain unchanged at 4.25 percent. The reverse repo rate also remains unchanged at 3.35 percent.
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