Repo rate remains unchanged at 4%
Part of: GS Prelims and GS – III – Economy
- RBI’s Monetary Policy Committee (MPC) has decided to keep its repo rate unchanged at 4%, in line with market expectations.
- RBI will maintain its ‘accommodative stance’ as long as required to sustain growth on a durable basis.
- The RBI maintained its GDP growth forecast at 10.5% for 2021-22.
- RBI also announced a series of measures to inject liquidity in the government securities market and the financial system.
- It will ensure orderly conduct of government borrowing programmes.
- In this respect, it announced a secondary market government securities (G-sec) acquisition plan worth Rs 1 lakh crore for April-June.
- RBI has decided to set up a committee to review the working of Asset Reconstruction Companies to ensure how better these entities can support the financial sector.
- In the policy review, the RBI decided to extend the RTGS and NEFT payments platforms to prepaid payment instruments, white label ATMs as well.