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RBI Monetary Policy: RBI Keeps Rate At Which It Lends Money To Banks Unchanged At 4%

Friday, June 4, 2021

/ by mansuralisaha

 

The News Cover: the monetary policy committee met on 2nd 3rd and 4th June 2021 and took stock of the evolving macroeconomic and financial conditions. as well as the impact of the covid wave, the second wave of the covid on the economy based on its assessment the mpc voted unanimously to maintain status quo that is keeping the policy reported. unchanged at four percent, the mpc also decided unanimously to continue with the accommodative stance as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of covid19 on the economy. while ensuring that inflation remains within the target going forward. the marginal standing facility, that is MSF rate and the bank rate remain unchanged at 4.25 percent. 

the reverse report rate also remains unchanged at 3.35 percent since the mpc is meeting in April the second wave of the covid-19 has surged across several straight states and spread into smaller towns and villages leaving a trail of human misery and tragedy in its wake yet in these days. of trials and travels it is vital to remain focused on vanquishing the virus tough times call for tough choices and tough decisions to emerge triumphantly it is said that storms make trees take deeper roots. I am convinced that as we stretch our endurance to eradicate the virus it will bring out the finest aspects of human character and capability I am reminded here of a quote attributed to the Greek philosopher Epictetus and it goes as follows. 

the greater the difficulty the more glory in surmounting it let me begin by setting out the underlying rationale of the mpc's decision provisional estimates of national income released by the national statistics office nso on may 31st placed. India's real GDP contraction at 7.3 percent for 2021 with GDP growth in the fourth quarter at 1.6 percent year-on-year. the forecast of a normal southwest monsoon the resilience of agriculture and the farm economy the adoption of covid compatible person operational models by businesses, and the gathering momentum of global recovery are forces that can provide tailwinds to the revival of growth revival of domestic economic activity. when the second wave abates, on the other hand, the spread of covid-19 infections in rural areas and the dent on urban demand poses downside risks ramping up the vaccination drive and bridging the gap in health care infrastructure and vital medical supplies can mitigate the pandemics devastation.


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