RBI Monetary Policy; Reserve Bank of India (RBI) Governor Shaktikanta Das held a press conference today. The three-day meeting of the Monetary Policy Committee of the Reserve Bank of India has ended today. In the Corona era and festive season, customers have received a setback from RBI. This is because the central bank has not made any change in the repo rate. At the same time, customers were expecting a cut in EMI.
This was the 25th meeting of the MPC, which was earlier to be held on 28 September but had to be postponed due to the delay in the appointment of independent members to the committee. Now three eminent economists Ashima Goyal, Jayant R Verma and Shashank Bhide have been appointed as members of the MPC. Let’s know what the central bank has announced for customers.
- RBI Governor Shaktikanta Das welcomed and thanked the new members of the Monetary Policy Committee.
- RBI has not made any change in the repo rate. It remains at four per cent. The MPC has taken this decision unanimously. That is, customers have not got any new relief on EMI or loan interest rates.
- Das said that the 3.35% reverse repo rate is constant.
- Further, the governor said that the recent economic data showed promising signs. There are strong signs of recovery in the global economy. There has been a recovery in manufacturing, retail sales in many countries. At the same time, consumption and export also showed improvement in many countries.
- They expect that GDP will increase in the last quarter of the financial year. We are thinking of a better future. There is growth in all sectors.
- Shaktikanta Das said, ‘I am optimistic. The third quarter saw a disproportionate but rebound in global economic activity.’ The first quarter’s contraction in the financial year 2020-21 is behind us. He said that now the focus is on revival. India may touch the earlier growth figures before the corona pandemic.
- GDP may come out of contraction path by the fourth quarter of the current financial year: RBI governor
- While the slow recovery of the first half of the fiscal year may gain momentum in the second half, economic activity will start to pick up from the third quarter: Das.
- Das said that they expect inflation to fall within the targeted target by the fourth quarter of the current financial year.
- The Indian economy is entering a decisive phase in the fight against the Coronavirus: RBI Governor Shaktikanta Das.
- Das said that the outlook for rabi crops in the country is looking better.
- They expect the GDP to project around 9.5 in the negative. The PMI increased to 56.9 in September, the highest since January 2012. The average cost of borrowing in the first half of the current financial year is at 5.82 per cent, the lowest in 16 years.
- Will approve a loan of Rs 7.5 crore for small borrowers.
- The Central Bank reduces the risk weight on the new housing loan.
- Also, in view of promoting digital payments in times of crisis, they propose to implement RTGS 24 hours from December 2020.
- The focus of the central bank is on easing and increasing finance, keeping in mind the target of Rs 20,000 crore open market operation, i.e. OMO next week. Under the Open Market Operation (OMO), central banks buy and sell government securities and treasury bills. RBI does this job in India. The RBI conducts open market operations to control the money supply in the country’s economy.
- The WMA (Ways and Means Advances) limit for the central government has set at Rs 1.25 lakh crore.
- By March 2021, one lakh crore on-tap TLTRO will be available. This will be linked to the repo rate.
- The co-lending scheme will be expanded to all NBFCs and HFCs.
- The central bank is ready to take all measures necessary to assure market participants for liquidity and comfortable financial conditions.