Monetary Policy Committee (MPC) Meeting- Highlights
The Reserve Bank of India (RBI) has conducted the Monetary Policy Committee (MPC) meeting on February 5. In the Monetary Policy review meeting, the central bank has kept all policy rates unchanged.
- In the Monetary Policy Committee (MPC) meeting, it was decided to keep the repo rate unchanged. Thus, the repo rate has been kept unchanged at 4%.
- Consequently, the reverse repo rate is unchanged at 3.35%.
- The Bank Rate and marginal standing facility (MSF) rate is unchanged at 4.25%.
- CPI inflation has been revised to 5.2% in Q4 of 2020-21, 5.2% to 5.0% in H1 of 2021-22, and 4.3% in the third quarter of 2021-22.
- The real GDP growth is estimated at 10.5% in 2021-22.
- MPC has decided to continue with an accommodative stance of monetary policy.
- The next Monetary Policy Committee (MPC) meeting will be held between April 5 to 7, 2021.
Current Policy Rates
- Repo Rate- 4%
- Reverse Repo Rate- 35%
- Bank Rate- 4.25%
- Marginal standing facility (MSF) rate- 4.25%
RBI to set up Committee on urban co-op banks
RBI has recently announced that it will set up an expert committee to devise a medium-term road map for enabling faster resolution/rehabilitation of Urban Co-operative Banks (UCBs) as well as strengthening the sector.