By Malvika Gurung
Investing.com -- RBI Governor Shaktikanta Das on RBI Monetary Policy
- Monetary Policy Committee (MPC) has voted to maintain a status quo on repo rate, along with a 5:1 majority to retain RBI’s stance as ‘accommodative’.
- 10-year bond yield drops to 6.36% from 6.39%, as Das announces to keep the reverse repo rate unchanged.
- Real GDP growth continues to be maintained at 9.5%.
- GDP growth forecast for Q4 FY22 revised from 6.1% to 6%.
- Consumer inflation forecast for FY22 is retained at 5.3%, with figures revised for Q3, from 4.5% to 5.1%, and Q4, from 5.8% to 5.7%.
- RBI expects CPI to peak in Q4 FY22 and subdued after that.
- Price stability is the fundamental principle of monetary policy. Policy support is required, as the economy is not strong enough yet to sustain itself, RBI Governor.
- Banks would not require RBI’s approval to infuse capital in their branches and arms outside of India.
- RBI to set up variable rate reverse repo (VRRR) auction as the main liquidity management operation.
- As per MPC, economic activity appears to be steadily improving, states Das.
- Private consumption continues to lie below pre-pandemic levels.
- RBI to release discussion paper related to charge applied on digital payments in India, and will launch UPI-based payment products for feature phone users.
- The targeted long-term repo operations (TLTRO) will carry on until the end date.
- NDTL for banks can fall 2% w.e.f. January 1, 2022, compared to 3% at present.
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So tomorrow market will be gap down....😀Like 4