New Delhi: Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday said that the benchmark interest rate will be left unchanged at 4 per cent amid concerns over elevated inflation. However, he maintained an accommodative stance, implying that there will be more rate cuts in the future if need arises to support the crippling economy during the COVID-19 times. Also Read - Digital Loan: Here's Why You Should Safeguard Yourself From 'Torcher' Apps
Notably, the central bank had slashed the repo rate by 115 basis points since late March to support growth. RBI had last revised its policy rate on May 22, in an off-policy cycle to perk up demand by cutting interest rate to a historic low. Also Read - Economy in Recovery Phase, India's GDP to Expand by 11% in FY21-22: Fitch
Here are top points from RBI Governor Das’s press address: Also Read - Scarred by Pandemic, Task Ahead to Restore Economic Growth And Livelihood: RBI Governor
1) The benchmark repurchase (repo) rate has been left unchanged at 4 per cent, Governor Shaktikanta Das said while announcing the decisions taken by the central bank’s Monetary Policy Committee (MPC). Consequently, the reverse repo rate will also continue to earn 3.35 per cent for banks for their deposits kept with Reserve Bank of India (RBI).
2) He said MPC voted for keeping interest rate unchanged and continued with its accommodative stance to support growth.
3) RTGS system will be made 24X7 in next few days, RBI Governor Das said.
4) GDP growth to turn positive in Q3 with 0.1 pc expansion; Q4 to see 0.7 pc growth; FY21 growth at -7.5 pc: RBI Governor
5) RBI says commercial, cooperative banks to retain profit made in 2019-20; not to make any dividend payment.
6) Economy recuperating faster with more sectors joining recovery path, said RBI Governor Das. “The recovery in rural demand is expected to strengthen further while urban demand is also gaining momentum,” he said.