RBI Monetary Policy

Key Takeaways:

• Monetary Policy Committee has voted unanimously to keep the repo rate unchanged at 4%  and reverse repo rate at 3.35%.

• Stance also kept accommodative for as long as needed to support the growth.

• Inflation will ease closer to target Q4 FY21 and GDP growth may also turn positive by Q4.

• India is likely to see speedy recovery with variations across sectors. Agriculture, consumer goods, power and pharma sectors to see quicker recovery.

• FY21 GDP may be seen contracting by 9.5%.

• Special OMO (Open Market Operations) worth ₹20,000 crores will be conducted next week.

• RBI to conduct on tap TLTRO (Targeted Long Term Repo Operations) of ₹1 lakh crore at floating rates linked to repo rates. TLTRO funds to be deployed in corporate bonds and debentures.

• Ways & Means Advance (WMA) limit for the centre has been kept at ₹1.25 lakh crores.

• RBI Monetary Policy Committee proposes round the clock availability of RTGS from December 2020.