RBI Monetary Policy: RBI Did Not Make Any Change In Repo Rate

RBI Monetary Policy: RBI did not make any change in Repo Rate, Sensex again above 60000.

Home-Car Loans becoming cheaper and more likely to come down again as RBI has decided not to make any change in key interest rates once again.

Reserve Bank Governor Shaktikanta Das told after the monetary policy review meeting that the repo rate has been kept at 4 percent, as well as the reverse repo rate has been kept at 3.35 percent.

Meanwhile, Sensex has again reached above the 60 thousand mark. Nifty 50 is also trading at 17,896.70 points.

GDP growth forecast at 9.5 percent.

The Reserve Bank has also kept the GDP growth forecast for 2021-22 unchanged at 9.5 percent.

The bi-monthly three-day meeting of the Monetary Policy Committee (MPC) of the Reserve Bank began on October 6 and continued till October 8.

This is the eighth time that the RBI has not changed the key interest rates. However, experts had already said that the RBI will not tamper with the key interest rates.

HDFC Bank Chief Economist Abhik Barua had said that the Reserve Bank may leave key interest rates unchanged in its fourth bi-monthly monetary review.

Rate not increased for the eighth time.

The central bank has kept policy rates unchanged in the last eight reviews since the repo rate was cut by 0.4 percent on May 22, 2020, amid the first wave of the pandemic.

Experts said the central bank has maintained the status quo on policy rates for the eighth time in a row.

RBI Monetary Policy: Fall in inflation.

Shaktikanta Das said consumer price inflation declined from 5.59 percent in July 2021 to 5.3 percent in August 2021.

The supply situation improved with the easing of restrictions and capacity improvements due to the pandemic.

Consumption is still in recovery mode, there is no immediate pressure on MPC to change interest rates or accommodative stance.

Therefore, the CPI inflation estimate has been reduced from 5.7 percent to 5.3 percent.