RBI keeps Repo unchanged; RTGS to be made available 24x7 soon
New Delhi: The Reserve Bank of India (RBI) has decided to let the interest rates unchanged in the country, keeping an eye on recovery in the economy and high inflation rate. The central bank has maintained its policy stance as ‘accommodative’.
Monetary Policy Committee (MPC) took the unanimous decision to let the key Repo Rate be at 4 percent. The Reverse Repo Rate has also been kept unchanged at 3.35 percent.
Interestingly, RBI Governor Shaktikanta Das proposed to introduce criteria for NBFC dividend distribution. The RBI also introduced risk based audit in big NBFCs & co-operative banks.
He also said RTGS will be made operational 24X7 in coming few days.
The MPC will maintain accommodative stance "for as long as necessary", said Das.
However, he said Real Gross Domestic Product (GDP) is expected to contract 7.5 percent in the ongoing fiscal. There was an estimate earlier that the Real GDP will contract 9.5 percent in the current fiscal.
The Consumer Price Index (CPI) inflation is forecasted to remain at 6.3 percent in the third quarter of the ongoing fiscal and 5.8 percent in the fourth quarter. "Signs of recovery (in the economic activity) are far from being broad-based. A small window available for proactive supply management strategies," Das said.
“RBIs decision to keep the repo rate unchanged at 4 percent is a welcome move reflecting its accommodative stance keeping the lending rates unchanged at 6.9 percent. We are going to see a further boost in the positive sentiment in the real estate market which will translate into sales pushing the sector on a complete recovery trajectory” said Manju Yagnik, Vice Chairperson, Nahar Group and Sr. Vice President, NAREDCO West.
“The demand for real estate assets is already high, as we have been receiving an encouraging response for all our projects. We hope the individual banks will take necessary steps and keep the real estate sector in their priority lending list” said Prateek Mittal, Executive Director, Sushma Group.
As was expected, the RBI has kept the repo rate unchanged. The threat of inflation looms large - it currently hovers above 7 percent- and the apex bank is tasked with reining it in while simultaneously fostering the green shoots of resuming consumption,” said Anuj Puri, Chairman, ANAROCK Property Consultants.