The Reserve Bank of India has announced the sixth bi-monthly monetary policy review.
This time as well the RBI kept policy rates unchanged to help tame inflation. Also, the reverse repo rate and repo rate remained unchanged at 3.35 percent and 4 percent respectively. The RBI also projected that the real GDP growth for 2021 will be minus 7.5 percent.
The monetary policy committee decided to continue with the accommodative stance “as long as necessary at least during the current financial year and into the next year” to revive growth on a durable basis, RBI Governor Shaktikanta Das said in a briefing.
easing from current levels,” said Lakshmi Iyer, chief investment officer for fixed income at Kotak Mahindra Asset Management Co. “While inflation guidance has been increased, there seems to be no urgency to withdraw liquidity prematurely as growth considerations remain equally strong.”
The RBI’s optimistic stance pushed Indian shares to record highs, as BSE Sensex crossed the 45,000 mark for the first time ever