RBI Monetary Policy meeting updates: Governor Shaktikanta Das is going to give information about the decisions taken in the meeting of the Monetary Policy Committee of the Reserve Bank. At present, the repo rate is 4 percent and the reverse repo rate is 3.35 percent.
Reserve Bank of India today Monetary Policy Committee meeting ,RBI MPC meetingRegarding Governor Shaktikanta Das (Shaktikanta Das) is about to address the media. All eyes are on what decision the Reserve Bank takes regarding the interest rate. Actually, there are many challenges before the Reserve Bank at this time. Dearness (inflation) increasing continuously, the price of crude oil due to Russia-Ukraine crisis (Crude oil price) continues to rise, which is a matter of concern, the growth rate remains under pressure, the US Federal Reserve has adopted an aggressive approach to control inflation and is eager to increase the interest rate. Apart from this, due to increase in the import bill, there is a fall in the rupee against the dollar. Keeping all these reasons in mind, the Reserve Bank has to take a decision regarding the monetary policy.
The RBI Monetary Policy Committee meets every two months. In the meeting held in February, the Reserve Bank had decided not to increase the interest rate for the 10th time in a row. At present, the repo rate is 4 percent and the reverse repo rate is 3.35 percent.
Monetary Policy statement by Shri Shaktikanta Das, Governor, Reserve Bank of India https://t.co/8w892tXAnX
— ReserveBankOfIndia (@RBI) April 8, 2022
No change in interest rate from May 2020
After the corona epidemic came to the fore, the Reserve Bank cut the repo rate by 1.15 percent after March 2020. The last cut in the interest rate was done in May 2020. There has been no change in it since then. At present the repo rate is 4 per cent which is the lowest level in 19 years. The reverse repo rate is 3.35 percent. The Reserve Bank has set an inflation target of 4 percent. However, the scope has been kept above and below 2 per cent.
Inflation at eight-month high
The inflation range for the Reserve Bank is up to 2-6 percent. If the rate of inflation is below or above this, the concern of the Reserve Bank increases. In the months of January and February, the inflation rate had crossed the upper limit of 6 per cent. In such a situation, there is pressure on the Reserve Bank. In February, the rate of retail inflation stood at 6.07 percent, which is the highest level in eight months.