Update:
The RBI has announced in the RBI Monetary policy that the repo rate will remain unchanged at 4%, Stock markets trade higher post announcement.
Stock Market Update:
At 12:30 pm IST, Sensex was trading at 37,997.97 gaining 334.64 points or 0.89%, Nifty 50 trading higher by 100 points to 11201.20 adding 0.90%. The markets continue to hold and take ahead the early gains post RBI Monetary policy. Zee Entertain, GAIL, ONGC among the top gainers of Nifty and M&M Finance, Eicher Motors, Axis Bank on the losers side.
RBI Monetary Policy:
Reserve Bank of India (RBI) has kept the Repo Rate unchanged at 4 percent and Reverse Repo Rate unchanged at 3.35 percent.
Monetary Policy Committee has maintained the accommodative stance and kept MSF rate, Bank rate unchanged at 4.25%.
RBI governor Shaktikanta Das says regulatory response has to be dynamic, proactive and balanced during the COVID-19 crisis. He says fully mindful of RBI’s responsibilities to maintain financial stability. (Moneycontrol)
Inflation Outlook
According to RBI, more favourable food inflation outlook might emerge on good farm produce. MPC expects headline inflation to remain elevated Q2 2021 and projects retail inflation to remain elevated in Q2.
GDP Growth:
Reserve Bank of India (RBI) expects FY21 real GDP growth to remain in negative zone in the 1st half & overall FY21, hence feels the space for further monetary policy action is available but would be advisable to be judicious
RBI credit policy:
Real GDP growth will remain in the negative, says RBI governor Shaktikanta Das. However, he said that any positive news on the COVID-19 containment efforts would change this scenario.
Governor on COVID-19 Crisis:
RBI governor Shaktikanta Das said that the war against COVID-19 is intense with the world bracing for a second wave. He said that while the pandemic poses a challenge of epic proportions, true grit will take India to victory. “These challenges will increase our resilience and self belief,” he added.
“We shall remain alert and watchful and collectively do whatever is necessary to revive the economy and preserve financial stability. Courage and conviction will conquer COVID-19.”- says RBI Governor.
(The inputs in the story are referred from Moneycontrol).
