RBI Monetary Policy / No change in policy rates for the 10th time in a row, RBI Governor Shaktikanta Das presented the results

The results of the first Monetary Policy Committee (MPC) meeting of the Reserve Bank of India (RBI) in the year 2022 have been out. Announcing the decisions taken in the meeting, Reserve Bank Governor Shaktikanta Das said that this time also there has been no change in the policy rates. That is, for the 10th time in a row, the RBI has kept the rates unchanged. Significantly, the meeting of the Monetary Policy Committee began on February 8. The decisions taken during the meeting were apprised on Thursday. Let us tell you that in the last meeting also, RBI did not make any change in the policy rate.

No change in reverse repo rate

Giving information about the decisions taken in the three-day meeting, Reserve Bank of India Governor Shaktikanta Das said that the repo rate will remain unchanged at 4 percent without any change. The MSF rate and bank rate will remain 4.25 per cent without any change. Along with this, as it was expected that this time RBI can increase it by 0.20 basis points by changing the reverse repo rate, on the contrary, the Reserve Bank has retained it at 3.35 percent without any change.

Rates were reduced to a historic level in May 2020

Significantly, the central bank had last changed the policy rates on 22 May 2020. To elaborate, the repo rate, at which the RBI lends short-term money to banks, has been kept unchanged at 4 per cent. Further, the reverse repo rate, at which RBI borrows from banks, was kept unchanged at 3.35 per cent. Marginal Standing Facility (MSPFR) and Bank Rate have also been kept unchanged at 4.25 per cent. Let us tell you that in May 2020, the central bank reduced key policy rates to a historic low to support the economy affected by the Kovid-19 epidemic. Since then the RBI has maintained the status quo.

CPI inflation forecast at 4.5%

The Reserve Bank Governor said that the real GDP growth for the financial year 2022-23 is estimated at 7.8 percent. Along with this, he said that the CPI inflation for 2022-23 is estimated to be 4.5 percent. Talking about the estimate of inflation, Das said that the inflation rate is expected to be 4.9 percent in the first quarter of FY 23 and 5 percent in the second quarter of FY 23, 4 percent in the third quarter and 4.2 percent in the fourth quarter. Is. He said the CPI is in line with expectations and it is easy to add optimism to food prices. However, the rise in crude oil prices is a major risk.

No liquidity problem

Shaktikanta Das said that banks should strengthen governance and risk management. Giving information about the outcome of the MPC meeting, he said, "The focus of the central bank is on liquidity rebalancing. There is no liquidity issue in the system. It is noteworthy that the MPC meeting was earlier scheduled to begin from February 7, but was postponed by a day due to the declaration of a state holiday in Maharashtra due to the death of Swar Kokila Lata Mangeshkar. After this, the three-day meeting of MPC started on 8 February and its results were announced by RBI Governor Shaktikanta Das on Thursday.