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MPC Meet Live Updates:FY22 will undo damage inflicted by COVID-19 on economy, says RBI Governor

RBI Governor Shaktikanta Das-led MPC hold repo rate at 4 per cent; maintains accommodative stance. Going forward, we see the Indian economy moving in only one direction i.e. upward, says Das

twitter-logoBusinessToday.In | February 5, 2021 | Updated 11:48 IST
MPC Meet Live Updates:FY22 will undo damage inflicted by COVID-19 on economy, says RBI Governor
RBI Governor Shaktikanta Das

The Reserve Bank of India (RBI) has held policy rates at 4 per cent in today's monetary policy committee announcement. However, markets are closely watching its stance on liquidity after the Centre's big borrowing plan announced during the Budget this week. As coronavirus hit India hard, the RBI had allowed a huge liquidity boost in the banking system. It carried out liquidity management operations, which left banks with huge fund surplus. Though the central bank has assured about restoring operations to normal gradually, bond markets will be looking for assurance in today's announcement.

Check out all the latest updates on RBI Government Shaktikanta Das' MPC meet outcome on BusinessToday.In live blog

10.33 AM: While the year 2020 tested our capabilities and endurance, 2021 is setting the stage for a new economic era in the course of our history: Das

10.31 AM: The RBI governor says the central bank will form an expert panel to strengthen primary urban co-op banks.

10.30 AM: The RBI to launch 'Retail Direct', a platform that'll allow retail investors direct access to G-Sec market.

10.28 AM: The RBI to ensure the government's market borrowing programme functions in non-disruptive manner, says Das

10.26 AM: Das says the RBI will come out with a draft paper regulated lenders in MFIs. The RBI also extends MSF relaxation for the next six months.

10.24 AM: Budget 2021 has provided impetus to health and infra sectors, says Das

10.23 AM: Vegetables prices likely to remain soft in near term; inflation to be revised to 5.2 pc in Q4 of FY21: Das

10.23 AM: Govt to review inflation target for RBI by March 2021; inflation targeting has worked well: RBI Guv Das

10.20 AM: In consonance with its monetary policy, RBI Governor keeps its stance on liquidity management "accommodative".

10.17 AM: RBI has projected the GDP growth of for FY22 to be 10.5 per cent.

10.16 AM: Outlook on growth turns positive; signs of recovery strengthen further. RBI Guv Shaktikanta Das

10.16 AM: RBI on inflation

  • Inflation has been better than expected
  • Stable near-term growth for food inflation is likely
  • CPI estimate for FY21 is expected to be 5.2%; for H1, it's expected to be 5.2%-5%; and for Q3, it'll be 4.3%

10.10 AM: RBI assessment

  • Outlook for growth has improved
  • FDI & FPI investments
  • Sectors are returning to normalcy
  • Power and energy demand is rising
  • People and goods movement increasing

10.05 AM: MPC keeps repo rate unchanged at 4 pe cent; maintains policy stance as 'accommodative'.

9.57 AM: Only five among 32 economists expect the central bank to cut repo rate today, according to a Bloomberg poll.

9.56 AM: The RBI is seen holding repo rate at 4.0 per cent through the rest of 2021 and possibly beyond, according to the median estimate in a Reuters poll.

9.52 AM: Watch out for Monetary Policy statement by RBI Governor at 10:00 am on February 05.

9.45 AM: The MPC kept the key benchmark rate unchanged in its last three review announcements. The current repo rate -- rate at which RBI lends to banks -- is at a record low of 4 per cent. The reverse repo rate -- rate for funds parked by banks with RBI -- is 3.35 per cent. 

9.40 AM: The RBI had last revised its policy rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting interest rate to a historic low. The central bank has cut policy rates by 115 basis points since February 2020.

Also read: Govt to borrow Rs 4.2 lakh crore more: 5 harmful effects on economy

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