RBI Keeps interest rates unchanged

The Reserve Bank of India (RBI) has interest rates unchanged and this is mainly attributed towards the second wave of Covid-19. The repo rate has been maintained at 4 percent and reverse repo rate at 3.35 percent. RBI Governor Shaktikanta Das who leads the Monetary Policy Committee (MPC) said the economic growth outlook for FY22 unchanged at 10.5

The MPC expects inflation at 5% in the fourth quarter of FY21. However, the RBI wants the Centre to take a call on the growing fuel prices. The inflation highly depends on the fuel prices and in the last two months, the petrol and diesel prices have remarkably gone and this could hurt the growth and economy.

Also the RBI has extended the National Electronic Funds Transfer (NEFT) and Real-Time Gross Settlement (RTGS) facilities to digital payments platforms. Earlier NEFT and RTGS facilities were used only by banks.

Post the RBI announcement, the stock markets have picked. BSE is up nearly 600 points while Nifty is trading over 160 points higher.