INSUBCONTINENT EXCLUSIVE:
RBI Governor Shaktikanta Das said there is room for further monetary easing going forward
The Reserve Bank of India (RBI) kept the repo rate unchanged at 5.15 per cent on Thursday, in line with economists
expectations, in a bid to combat inflation
The central bank, however, retained its accommodative monetary policy stance as growth remains lacklustre
RBI Governor Shaktikanta Das-led Monetary Policy Committee decided to continue with an "accommodative" policy stance "as long as it is
necessary to revive growth, while ensuring that inflation remains within the target"
The "underlying theme of our decisions is financial stability", said the RBI governor
All six members of the Monetary Policy Committee voted in favour of maintaining the status quo on policy
The RBI said the economy continues to be weak and the output gap remains negative, projecting a gross domestic product (GDP)
growth rate of 6 per cent for the next financial year starting April 1 and retaining the estimate for the current financial year at 5 per
should not see a repeat of status quo in monetary policy as future policy action and hinted at rate cuts going ahead, he said during a media
quarter ending March 31, after retail inflation worsened to its highest level recorded in more than five years in December last year,
formulating its monetary policy.In relief to a large number of small businesses, the RBI decided to extend the benefit of a one-time loan
restructuring scheme to GST-registered micro, small and medium enterprises (MSMEs) meeting certain conditions
The central bank said detailed guidelines will be issued shortly.The RBI said some high-frequency indicators point to a lift in the momentum
survey, manufacturing activity expanded at its quickest pace in nearly eight years in January with robust growth in new orders and output
Activity in the dominant service industry accelerated in January at the fastest pace in seven years on strong domestic demand.The central
bank said the measures on rural economy and infrastructure announced in the Union Budget should help the growth momentum in the near term
The corporate tax rate cuts of September 2019 should help boost the growth potential over the medium term, the RBI added in its sixth policy
support growth over the longer term but insufficient to provide an immediate boost to the ailing economy.
