The Shaktikanta Das-led RBI Monetary Policy Committee on Thursday unanimously decided to keep the repo rate unchanged at 4 per cent while maintaining the accommodative stance. Das said that reverse repo rate also remains unchanged at 3.35 per cent. “Accommodative stance of Monetary Policy to continue as long as necessary to revive growth and mitigate impact of COVID19, while ensuring inflation remains within target going forward,” Das said, while addressing media, during an online briefing.
The RBI governor said that domestic food inflation has remain elevated across economies ever since the Coronavirus outbreak and added that agriculture sector prospects have improved with the good monsoons and rise in Kharif sowing area. MPC is expected inflation to stay elevated in Q2FY21 but is of the view that is it likely to ease in H2 aided by favourable base effects, Das said. While addressing the media after the RBI meeting of Monetary Policy Committee 2020, Governor Shaktikanta Das said that global economic activity has remained fragile but global financial markets have been buoyant amid the ongoing coronavirus pandemic.