On Friday, April 8, the RBI governor Shaktikanta Das announced the results of the monetary policy committee (MPC). The governor announced that the repo rate has been kept unchanged at 4% & also mentioned that the crisis in Europe has the potential to derail the global economy.
The MPC met on 6, 7, April to discuss the current economic situation & the outlook. “Monetary Policy Committee met on 6th, 7th and 8th April. Based on an assessment of the macro-economic situation and the outlook, MPC voted unanimously to keep the Policy Repo Rate unchanged at 4%,” said the governor.
Mr. Shaktikanta Das mentioned that as the economy is recovering from the pandemic, the ongoing Russia-Ukraine war can derail the global economy. “While the pandemic quickly morphed from a health crisis to one of life & livelihood, conflict in Europe has the potential to derail the global economy,” said Mr. Das.
The governor further stated that to overcome ourselves from this crisis we need to follow a cautious approach. The governor has also emphasized three different aspects that can enable the country to deal with emerging crisis.
- Significant improvement in the external sector.
- Foreign Exchange Reserves which are at very comfortable levels.
- Substantial strengthening of the financial sector.
A press conference is also scheduled for today at 12 pm after the governor announces the MPC results.