RBI Monetary Policy
On April 7, 2021, the Monetary Policy Committee of Reserve Bank of India announced the outcome of its bi-monthly monetary policy review.
- The repo rate has been kept unchanged at 4%.
- The reverse repo rate has been kept at 3.35%.
- The real GDP growth for the Fiscal Year 2022 is predicted to be 10.5%.
- The CPI of 2022 is predicted to be at 5.1%.
- The MSF rate has been kept unchanged at 4.25%.
- The Bank rate has been kept unchanged at 4.25%.
- RBI is to buy Rs 1 lakh crores of G-Sec under the G-Sec Acquisition Programme.
- The Apex Bank has increased the centre’s Ways and Means Advances by 46%. The current limit is Rs 32,225 crores. It has now been increased to Rs 47,010 crores.
- Maximum End of Pay balance for payment banks has been doubled to Rs 2 lakhs.
- Additional liquidity facility of Rs 50,000 crores announced for NABARD, SIDBI and NHB in 2021-22.
- Softening of cereal prices are expected.
- The mitigation of price pressure on key food items is to depend on supply side measures.
- The global growth is to gradually recover from slowdown.
The repo rate is the rate at which the Reserve Bank of India lends money to the commercial banks in the country.
Reverse Repo Rate
The reverse repo rate is the rate at which the Reserve Bank of India borrows money from the commercial banks in the country.
CPI is Consumer Price Index. It is the measure that examines the weighted average of prices of goods and services purchased by households.
MSF is Marginal Standing Facility. It is the rate at which RBI lends funds to scheduled banks against Government securities.
Category: Economy & Banking Current Affairs
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