RBI Governor says real GDP to contract by 9.5 per cent in the current fiscal | TOP POINTS
The meeting of the six-member MPC, earlier slated for September 29 to October 1, was rescheduled as the appointment of independent members was delayed. The MPC must have a quorum of four.
New Delhi: Shaktikanta Das, RBI Governor announced the Bi-monthly Monetary Policy. He said, real GDP is expected to decline by 9.5% with risks tilted towards the downside.
# Economic activity is stabilising in Q2 after 23.9% year-on-year decline in real GDP in Q1 (Apr-June). Cushioned by govt spending & rural demand, manufacturing gradually recovered in Q2. Agriculture outlook is robust. Merchandise exports slowly catching up to pre-COVID levels: RBI
# Our assessment is that inflation will remain elevated in September but ease gradually towards the target over Q3 & Q4. Our analysis also suggests that supply disruptions & associated margins and markups are the major factors driving up inflation: Shaktikanta Das, RBI Governor
# RBI Governor says real GDP to contract by 9.5 per cent in the current fiscal
# Current inflation hump transient; agriculture outlook looks bright, oil prices to remain rangebound: RBI Governor Das
# Persistently high inflation fanned in part due to supply side disruptions along with seasonal factors deterred the Reserve Bank Of India from reducing lending rates
# In order to facilitate swift and seamless payments in real-time for domestic businesses and institutions, it has been decided to make available RTGS (Real-time gross settlement) system round the clock on all days from December 2020: RBI Governor
# Reserve Bank of India (RBI) stands ready to undertake further measures as necessary to assure market participants of access to liquidity and easy finance conditions: Shaktikanta Das, RBI Governor
# Marginal Standing Facility Rate & bank rate remains unchanged at 4.2% and the reverse repo rate stands unchanged at 3.35%: Shaktikanta Das, RBI Governor
# For the year 2021, real GDP is expected to decline by 9.5% with risks tilted towards the downside: Shaktikanta Das, RBI Governor
Monetary Policy Committee (MPC) voted unanimously to keep policy repo rate unchanged at 4%. MPC also decided to continue with the accommodative stance of monetary policy as long as necessary at least through the current financial year & next year: Shaktikanta Das, RBI Governor
Bi-monthly Monetary Policy address by RBI Governor, Shaktikanta Das
Bi-monthly Monetary Policy address by RBI Governor, Shri Shaktikanta Das https://t.co/n2aOm0P71S
— ReserveBankOfIndia (@RBI) October 9, 2020
The newly-constituted Monetary Policy Committee (MPC) of the Reserve Bank began its three-day deliberations on Wednesday, amid expectations that the central bank will maintain status quo on the benchmark lending rates in view of hardening inflation.
At the end of the deliberations, the RBI will come out with its monetary policy review on Friday.