Reserve Bank of India (RBI) today kept the benchmark interest rates unchanged amid COVID-19 uncertainty and fears over inflation. While making the policy statement, RBI Governor Shaktikanta Das said that the projected Gross Domestic Product growth rate will be 9.5 per cent for the current fiscal year.
RBI has kept repo rate unchanged at 4.25 per cent, sixth time in a row. The RBI reverse repo rate or RBI’s borrowing rate also remains unchanged at 3.35 per cent. RBI has also maintained accommodative monetary policy stance to support growth and kept inflation at targeted level, he said.
Governor Shaktikanta Das said that India’s forex reserves may have exceeded 600 billion US dollars and to extend special liquidity facility of 16,000 crore rupees to SIDBI for on lending and refinancing. He further said that a separate liquidity window of 15,000 crore rupees to be opened till 31st of March for intensive sectors. It will help banks to provide support to hotels and restaurants and other services under this programme.
About inflation, he said, GDP growth forecast for FY 22 has been cut from 10.5 per cent earlier to 9.5 per cent. The recent fall in inflation provides elbow room and policy support from all sides required to regain growth momentum.