RBI Governor’s Speech Today Live: Shri Shaktikanta Das, Governor, RBI has live today and mentioned four points i.e. RBI Assessment of Growth & Inflation, Guidance on Liquidity & Financial Market, Set an Additional Measures, and Broad Approach of RBI for FY 2021-22. Monetary Policy Committee met on 2nd, 3rd, & 4th June 2021 and took stock of evolving the macro-economic financial condition as well as the impact of the 2nd wave of Covid-19 on the economy.
Monetary Policy Decision by RBI Governor
Based on the assessment, the NPC voted unanimously to maintain status-quo i.e. keeping the policy repo rate unchanged at 4%. The NPC also decided to continue with an accommodative stance as long as it’s necessary to revive and sustain growth on a durable basis and ensuring that inflation remains within target going forward. The Marginal Standing Facility (MSF) and Bank rate remain unchanged at 4.25%. The Reverse Repo Rate also remains unchanged at 3.35%.
The impact on economic activity is expected to be relatively contained in the 2nd wave with restrictions on mobility. Urban demand has reflected some high-frequency indicators i.e. Electricity consumption, Railway freight, Port cargo, Steel consumption, Cement production, e-Way bills, & Toll collections recorded sequential moderation during April and May 2021.