Mood of the nation has shifted to confidence & hope, says RBI
Governor Shaktikanta Das
The Reserve Bank
of India Monetary
Policy Committee on Friday voted to keep key rates unchanged and maintained
an accommodative stance, announced Governor Shaktikanta Das. With this repo
rate stays at 4.0% while reverse repo rate stays at 3.35%
The development comes amid signs of recovery in the economy badly battered by
the coronavirus pandemic.
"Mood of the
nation has shifted to confidence & hope," said Shaktikanta Das adding
that the GDP growth may turn positive by Q4FY21. There is an expectation of
triple-speed recovery in economic activity, however, real GDP is expected to
decline by 9.5%. He said that focus must shift from containment to reviving the
economy.
In a Business
Standard poll, all the 10 participants, comprising economists and bank
treasurers had expected the RBI
to pause.
Most observers
said the reason for more rate cuts, at least in this calendar year, has ended
for the RBI. The MPC can take a view only after seeing the budget math and the
fiscal deficit numbers. Any rate cuts now will also not add much of a value,
considering the transmission of the past cuts has not happened.
The announcements
made by Governor Shaktikanta Das comes over a week after the MPC meeting was
postponed due to delay in the appointment of external MPC members.
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