Business Desk: The Reserve Bank of India has not made any change in the repo rate once again, on the expectations of the common man. Reserve Bank of India Governor Shaktikanta Das on Wednesday, during the first policy review of the current financial year, announced that there would be no change in policy rates, saying that the central bank was generous in supporting monetary growth to support growth and keep inflation at the targeted level. Will continue the policy. That is, the repo rate will remain at 4 per cent and the reverse repo rate at 3.35 per cent.
The RBI governor said that the recent increase in Kovid-19 transition has created uncertainty about the improvement in economic growth rate. At the same time, he stressed the need to stop the outbreak of the virus and focus on economic reforms. The central bank retained the economic growth target for the financial year 2021-22 at 10.5 percent. Das said that the central bank would ensure sufficient cash in the system, so that the productive sectors would get loans easily.
The salient features of RBI are as follows: -
In the first monetary review for FY 2021-22, the economic growth target for FY 2021-22 was retained at 10.5 per cent.
The central bank will ensure sufficient cash in the system, so that the productive sectors get easy credit.
The RBI will ensure the smooth running of the government borrowing program, financial stability will be maintained.
RBI announced the facility of giving an additional Rs 50,000 to NABARD, NHB and SIDBI, so that they can give more new loans in the current financial year.
For the short term requirement of the states (WMA), the lending facility was increased to Rs 47,010 crore grossly.
The CPI is expected to be 5.1 per cent in FY 2022. The retail inflation is expected to be 5.20 per cent in the first and second quarter. It may be five per cent in the fourth quarter.
The inflation in food items will depend on the southwest monsoon and taxes on petrol and diesel.
There will be emphasis on increasing liquidity in the market. The central bank will buy bonds worth Rs 1 lakh crore in the first quarter of FY 2021-22.
Bonds worth Rs 25,000 crore will be purchased under the Government Securities Program.
Das said that with the help of the government, the Reserve Bank of India will take all possible measures to guide the changes in the country's economy in the wake of the corona virus. The central bank is taking steps to provide adequate liquidity in the system. He said that the demand of customers from rural areas is increasing in the country, whereas now there are also signs of improvement in customer demand from urban areas. Economic recovery is coming due to the worldwide vaccination of coronavirus. Along with this, banking regulators around the world are softening monetary policies, which can help the global GDP. Expectations of India's GDP growth have also been strengthened due to large scale vaccination campaigns in the country.