08/04/2022
*RBI Monetary Policy - Outcome*
The RBI Monetary Policy Committee made following changes in todayβs policy:
- RBI MPC keeps Repo Rate unchanged at 4.00% and ups reverse repo rate by 40bps at 3.75% to ensure liquidity.
- MSF Rate and Bank Rate remain unchanged at 4.25%.
- The committee has introduced SDF (Standing Deposit Facility) at 3.75% which is 25bps below Repo Rate of 4%. This instrument will be used to absorb liquidity.
- Committee has voted unanimously for accommodative stance which could be less accommodative ahead.
- To restore liquidity adjustment facility (LAF) corridor to 50 bps, as it was pre-Covid.
- Concerns over protracted supply disruptions have rattled commodity, financial markets.
- Real GDP for FY23 revised downwards at 7.2% from 7.8% earlier while inflation has been revised upwards at 5.7% for FY23 from 4.5%.
- MPC will adopt nimble footed approach to adjust liquidity while maintaining accommodative stance.
- RBI to maintain orderly financial condition in market and will take steps to contain impact of global spillovers.
- RBI will do gradual, calibrated withdrawal of liquidity; Restore market opening time at 9:00 am with effect from 18th Aprβ22.