RBI Governor Shaktikanta Das while addressing the media has announced that the Repo rate remains unchanged at 4%.
“Accommodative stance of the monetary policy will continue as long as necessary to revive growth and mitigate the impact of #COVID19 pandemic, while ensuring that inflation remains within target going forward. Reverse repo rate also remains unchanged at 3.3%,” Das said.
Monetary Policy Committee (MPC) noted that in India too, economic activity had started to recover, but surges of fresh infections have forced fresh lockdowns, hence several high-frequency indicators have levelled off.
Taking into consideration all factors, the GDP growth in the first half of the year is estimated to remain in the contraction zone. For the year 2020-21 as a whole, real GDP growth is also estimated to be negative.
Das further stated, RBI is perhaps the only central bank in the world which has set up a special quarantine facility for continuity of critical operations.