India Central Bank Keeps Rates Unchanged As Expected
08 Octubre 2021 - 02:59AM
RTTF2
India's central bank decided to leave its key interest rate
unchanged at a record low and to stop further purchase of
government securities from the secondary market.
The Monetary Policy Committee, led by Governor Shaktikanta Das,
unanimously voted to hold the key repo rate at 4.0 percent, the
Reserve Bank of India said in a statement on Friday. The decision
was in line with expectations.
The reverse repo rate was left unchanged at 3.35 percent and the
marginal standing facility rate and the Bank Rate at 4.25
percent.
By a majority of 5 to 1, the MPC voted to retain the
accommodative policy stance.
The MPC said it will continue with the accommodative stance as
long as necessary to revive and sustain growth on a durable basis
and continue to mitigate the impact of COVID-19 on the economy,
while ensuring that inflation remains within the target going
forward.
Das said the secondary market G-Sec Acquisition Programme, or
G-SAP, has been successful in addressing market concerns. The need
for undertaking further G-SAP operations at this juncture does not
arise.
The Reserve Bank, however, would remain in readiness to
undertake G-SAP as and when warranted by liquidity conditions, the
governor said.
The RBI observed that aggregate demand is improving but slack
still remains. Output is still below pre-pandemic level and the
recovery remains uneven and dependent upon continued policy
support.
The central bank retained the projection for real GDP growth for
the financial year 2021-22 at 9.5 percent. For 2022-23, the growth
is forecast to slow to 7.8 percent.
While the near-term prospects are bolstered by the lower base of
last year, the outlook is contingent on the evolving COVID-19
trajectory, the bank noted.
According to RBI, the headline consumer price momentum is
moderating which, combined with favorable base effects in the
coming months, could bring about a substantial softening in
inflation in the near-term.
Inflation outlook for 2021-22 was lowered to 5.3 percent from
5.7 percent.
"Given our view that the recovery will only be back on more
solid footing next year, we continue to think that rate hikes are
still a long way off," Darren Aw, an economist at Capital
Economics, said.
Euro vs CHF (FX:EURCHF)
Gráfica de Divisa
De Feb 2024 a Mar 2024
Euro vs CHF (FX:EURCHF)
Gráfica de Divisa
De Mar 2023 a Mar 2024