New Delhi: Reserve Bank of India Governor Shaktikanta Das announced on Friday that the key interest rate repo rate would remain stable at 4 per cent. Announcing the decisions taken at RBI’s Monetary Policy Committee i.e. MPC meeting, Das said that the country’s economic growth prospects have improved significantly and inflation has come down to 6 per cent. Let us also tell you what he said about economic development and inflation.
Inflation came to the tolerance level
The Reserve Bank has revised the retail inflation estimates for the first half of FY 2022. According to the data, the new estimated rate has been reduced from 5 to 5.2 per cent. Earlier this estimate was kept at 4.6-5.2 per cent. According to the RBI governor, inflation has come to a tolerance level of 6 per cent. Estimates of economic growth are getting better than before. In such a situation, MPC believes that it is necessary to support growth in the present time.
No change in the repo and reverse rate
Yesterday, the Reserve Bank of India’s MPC has not made any change in the repo and reverse repo rates. According to RBI, the repo rate is 4 per cent, which is historically low. Repo and reverse repo were last changed on 22 May 2020. The change was made without the RBI meeting due to the coronavirus. In the last year, the RBI has cut the repo rate by a total of 1.15%. According to experts, it is more important to increase economic development. Hence the repo rate is not expected to be raised.