Live Blog: RBI announces Monetary Policy

A significant cut in interest rates on personal housing loans and loans to the commercial real estate sector was announced.

High-frequency indicators suggest that consumption (both private and government); investment; and external demand are all on the path of regaining traction: RBI Governor Shaktikanta Das.

RBI announced over 100 measures to lessen the impact of COVID-19. "We will continue to monitor measures that are still under implementation," RBI Governor Das said.

CPI inflation is pegged at 5.9 percent in Q2; 5.3 percent in Q3; and 5.8 percent in Q4 of 2021-22, with risks broadly balanced. CPI inflation for Q1:2022-23 is projected at 5.1 percent.

We are in the midst of an extraordinary situation arising out of the pandemic, require policy support from all sides to nurture recovery: RBI

GDP growth target retained at 9.5% in FY22.

RBI has maintained the monetary policy stance at 'accommodative,' which means that it is unlikely that a rate hike will happen.

CPI inflation seen at 5.7% in 2020-21, to fall to 5.1% in April-June 2022, says RBI Governor Shaktikanta Das

RBI Governor Shaktikanta Das has informed that the economy is recovering after being hit by the second wave of COVID-19. He is hopeful that activity will pick up because of vaccination.

Repo rate will stay unchanged at 4%, reverse repo rate remains at 3.35%.

Interest rates to remain unchanged as the Monetary Policy Committee (MPC) has decided to maintain status quo.