The Bank of India’s backup Governor Shaktikanta Das on Wednesday announced that the repo and repo levels will remain unchanged at 4 percent and 3.35 percent, and the accommodating attitude will occur as long as necessary. For the fifth consecutive time, the policy level has been saved has not changed.
The monetary policy committee has been unanimously chose an accommodative attitude to maintain growth on a durable basis and continues to reduce the impact of Covid-19 on the economy while ensuring that inflation remains in the future “, the governor said, adding that the focus of the domestic economy must contain the spread of the virus and economic revival.
2021 has seen the production of bumper food granules,
which will see softening cereal prices, MPC noted. “However, the surge in infection has recently provided greater uncertainty towards prospects and needs to be closely monitored especially because local locking can reduce increased demand conditions and delay normal returns,” the Governor said.
Economic activities normalize, rural demands remain neat, urban demand has received traction, the monetary policy committee has noted, said the watershed.
The committee also expressed concern over a fresh surge in the number of Covid-19 infections but hoping for vaccination drives would provide Fillip on growth.
Experts expect the attitude of “dovish” in the midst of an increase in inflation, the increase in the number of Covid-19 cases and the imposition of fresh restrictions in several parts of the country. “Given the increase in the spread of Coronavirus and the imposition of new restrictions containing viruses spread across the main section of the country, the RBI is likely to continue with the attitude of its accommodative monetary policy in the upcoming MPC meeting,” said brick ranking in a statement.
The IMF on Tuesday projected an impressive 12.5 percent growth rate for India in 2021, stronger than China. Washington-based global financial institutions, in the prospect of the annual world economy ahead of the annual spring meeting with the World Bank, said the Indian economy is expected to grow by 6.9 percent by 2022.