Detailed Takeaway from RBI Monetary Policy On Dec 8: RBI Governor

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Detailed Takeaway from RBI Monetary Policy On Dec 8: RBI Governor
Credit: © Reuters.

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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  • Pradyut Roy @Pradyut Roy
    So tomorrow market will be gap down....😀
    Like 4

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