Highlights of the RBI monetary policy

Following are the highlights of the announcements made by Reserve Bank of India Governor Shaktikanta Das after the third bi-monthly monetary policy review by MPC on Friday:

Monetary Policy Committee keeps key interest rate (repo) unchanged at 4% for 7th consecutive time;

Consequently, reverse repo rate too remains unchanged at 3.35%;

Bank rate also remains same at 4.25%;

RBI to continue its accommodative stance to sustain growth amid COVID;

Retail inflation (CPI) projection at 5.7% during 2021-22; may drop to 5.1% in Q1 of next fiscal;

RBI retains GDP growth projection for 2021-22 at 9.5%;

RBI says some high-frequency indicators looking up again during June-July;

RBI proposes to conduct two more auctions of Rs 25,000 crore each in August under G-SAP 2.0;

Repo rate cut by 250 bps since February 2019, reduced bank lending rate by 217 bps;

RBI says domestic borrowing costs have eased;

Transmission to lending rates has been stronger for MSMEs, housing and large industries;

Significant cut in interest rates on personal housing loans and loans to commercial real estate sector augurs well for the economy;

RBI announces additional measures on liquidity front;

After onset of COVID pandemic, RBI says it announced over 100 measures to mitigate its impact;

Next meeting of the MPC scheduled for October 6 to 8.