Repo rate remains unchanged at 4%, and Reverse repo rate also remains unchanged at 3.3%, RBI Governor Shaktikanta Das said.
Accommodative stance of the monetary policy will continue as long as necessary to revive growth and mitigate the impact of COVID19 pandemic, while ensuring that inflation remains within target going forward.
RBI is perhaps the only central bank in the world which has set up a special quarantine facility for continuity of critical operations.
Taking into consideration all factors, the GDP growth in the first half of the year is estimated to remain in the contraction zone. For the year 2020-21 as a whole, real GDP growth is also estimated to be negative: Reserve Bank of India (RBI) Governor Shaktikanta Das
Monetary Policy Committee (MPC) noted that in India too, economic activity had started to recover, but surges of fresh infections have forced fresh lockdowns, hence several high-frequency indicators have levelled off: RBI Governor Shaktikanta Das
With COVID19 infections rising under fragile micro-economic&financial conditions, we propose to take regulatory&developmental measures – enhance liquidity support for financial markets, ease financial stress caused by COVID19 while strengthening credit discipline improve the flow of credit, deepen digital payment systems and facilitate innovations by leveraging technology.