RBI Monetary Policy Latest Updates:-
On April 7, 2021, the Reserve Bank of India Monetary Policy Committee declared the results of its bi-monthly monetary policy review: Take a look at key points on RBI Monetary policy.
- The international growth is steadily speed-up from a slowdown.
- The repo rate has no change, and it remains at 4%.
- The reverse repo rate is 3.35%.
- The consumer Price Index (CPI) of Fiscal Year 2022 is forecasted at 5.1%.
- The Bank rate has not changed and remains constant as earlier at 4.25%.
- The GDP growth for the year 2022 is expected to be 10.5%
- The MSP rate has not changed remain the same as earlier at 4.25%.
- The reduction of price pressure on significant food items such as edible oil and protein-based elements relies on supply-side measures.
- Maximum limit of pay balance for payment banks has been raised twice over to Rs 2 Lakhs.
- Added liquidity benefits of Rs 50,000 crores declared for NHB, NABARD and SIDBI in 2021-22.
- Cereal prices are expected to go down.
- RBI is going to purchase Rs 1 lakh crores of G-sec Under Sec Acquisition Programme RBI.
- RBI to raise the centre's Ways and Means Advances by 46%. The existing limit is 32,225 crores. Now it has been enhanced to Rs. 47,010 crores.
Important RBI Terms:-
The repo rate is considered a rate that the Reserve Bank of India provides loan to India's commercial bank.
Reverse Repo Rate
The reverse repo rate is considered a rate in which RBI borrows funds from India's commercial bank.
CPI stands for consumer price index. It is the evaluation that inspects the estimated standard of prices of services and goods purchased by consumers.
MSF refers to Marginal Standing Facility. The MSF is a rate that the Reserve Bank of India lends money to the listed banks against Government securities.