MUMBAI: The Reserve Bank of India expectedly kept interest rates unchanged at a record low on Friday but signalled the start of tapering pandemic-era stimulus measures on economic recovery taking roots.
The six-member Monetary Policy Committee (MPC) kept the key lending rate or the repo rate unchanged at 4 per cent while the reverse repo rate or the borrowing rate was maintained at 3.35 per cent. It voted 5-1 to retain the accommodative stance, RBI Governor Shaktikanta Das said in an online broadcast. He indicated the central bank’s willingness to make “gradual” adjustments to the excess liquidity in the monetary system which currently stands at over Rs 9 lakh crore.
Importantly, the GSAP programme to purchase government securities from the market has been stopped for now to ensure that there is no further infusion of liquidity, he said and stressed that the step is not a reversal of its accommodative policy stance. RBI will be ready to resume bond purchases if needed, he added. RBI had bought Rs 2.2 lakh crore worth bonds through Government Securities Acquisition Programme or GSAP in the previous two quarters.
The central bank maintained GDP growth projection at 9.5 per cent for the current fiscal ending March 2022.
This story is from the October 09, 2021 edition of Millennium Post Delhi.
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This story is from the October 09, 2021 edition of Millennium Post Delhi.
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