At the recently concluded monetary policy committee (MPC) meeting of the Reserve Bank of India (RBI)—which was rescheduled from October 1 to October 7—the members unanimously voted to keep the policy repo rate unchanged at 4%.
The six-member MPC, which includes three new members who were inducted earlier this month, also opted to continue with its accommodative stance as long as necessary to revive growth on a durable basis, and mitigate the impact of Covid-19 on the economy, while ensuring that inflation remains within the target going forward.
While the decision of the MPC, which met between October 7 and October 9, was on expected lines as far as the interest rates were concerned, the RBI did announce fresh liquidity and regulatory measures to alleviate the Covid-19-induced pain for the economy.
In his post-policy address, RBI governor Shaktikanta Das said that the Indian economy was entering a decisive phase in
The Governor of Reserve Bank of India Shaktikanta Das on October 9 announced the Monetary Policy Committee (MPC)’s decisions. The RBI Governor also announced a host of new measures to be undertaken by the central bank.
The newly-constituted MPC of the central bank began its three-day deliberations on October 7, amid speculation that it will maintain status quo on the benchmark lending rates in view of hardening inflation.
Here is the full text of RBI Governor Shaktikanta Das’s speech:
Governor’s Statement, October 9, 2020
The newly appointed Monetary Policy Committee (MPC) with Dr. Ashima Goyal, Professor Jayanth R. Varma and Dr. Shashanka Bhide as external members met on 7th, 8th and 9th October, 2020 in its first meeting and the 25th under the monetary policy framework that was instituted in June 2016.
I welcome the new members
As the economy somewhat stabilises after a 23.9 per cent plunge in the GDP in the April-June quarter marred by the nationwide lockdown, Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday (9 October) said that the deep contractions of Q1 are behind us and the real GDP may decline by 9.5 per cent in the financial year 2020-21.
Addressing the media after the Monetary Policy Committee’s meeting, the RBI Governor has said that the modest recovery in various high-frequency indicators in September 2020 could strengthen further in the second half of 2020-21 with progressive unlocking of economic activity.
“Agriculture and allied activities could well lead the revival by boosting rural demand, ” he added.
Das said that relative to pre-Covid levels, several high frequency indicators are pointing to the easing of contractions in various sectors of the economy and the emergence of impulses of growth.
“By all indications,