The central bank has reduced the GDP growth forecast for the third quarter of the fiscal year 2022 to 6.6 percent from the earlier estimate of 6.8 percent.
RBI Governor Shaktikanta Das said that the economy is recovering from the aftershocks of the second wave of Corona and it is accelerating but it does not seem to be sustainable for long.
RBI Monetary Policy: Reserve Bank of India Governor Shaktikanta Das presented the fourth bi-monthly monetary policy of the Monetary Policy Committee (MPC) on Wednesday. Announcing the results of the meeting, Shaktikanta Das announced to keep the interest rates stable. Repo rate has been kept constant at 4 per cent, reverse repo rate at 3.35 per cent. The MPC has maintained its accommodative stance. Let us tell you that in March last year (year 2020), RBI had cut the repo rate by 0.75 percent and in May by 0.40 percent. After these cuts, the repo rate had come down to a record low of 4 per cent.
Economy recovering from the shocks of Corona
RBI Governor Shaktikanta Das said that the economy is recovering from the aftershocks of the second wave of Corona and it is accelerating but it does not seem to be sustainable for long. According to Shaktikanta Das, policy support is necessary for the economic recovery to last for a long time.
Country ready to deal with any problem
He said that at present the domestic economy of the country is under threat of a new variant of the corona virus, Omicron. However, he assured that our country is fully prepared to deal with problems like Kovid-19. He said that we also have a strong buffer stock available to control inflation.
Growth forecast retained at 9.5 percent
RBI has retained the real GDP growth forecast at 9.5 per cent. However, the central bank has reduced the GDP growth forecast for the third quarter of fiscal year 2022 to 6.6 percent from the earlier estimate of 6.8 percent. Apart from this, the RBI has reduced the GDP growth forecast for the fourth quarter of the fiscal year 2022 from 6.1 percent to 6 percent. According to RBI Governor Shaktikanta Das, the target of retail inflation for the fiscal year 2022 remains at 5.3 percent.
Digital payments can be expensive
Shaktikanta Das said that the Reserve Bank of India will issue a discussion paper on levying charges on digital payments. It is clear from this that you may have to pay extra in the form of fees for making digital payments in the coming times. He said that RBI is also preparing to launch UPI based feature phone products.
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