In the near future, the prices of vegetables may moderate. RBI Governor Shaktikanta Das said this after the meeting of Monetary Policy Committee (MPC) on Friday.
New Delhi. There is a relief news for the common man troubled by the rising prices of petrol and diesel. They will not have to pay much for vegetables. In the near future, the prices of vegetables may moderate. RBI Governor Shaktikant Das said this after the meeting of Monetary Policy Committee (MPC, MPC) on Friday. He has revised the inflation rate in the fourth quarter of 2020-21. Inflation is expected to be 5.2 percent.
RBI Governor Das said that the system of inflation targets has worked well. The stance regarding liquidity under monetary policy remains liberal. RBI will ensure that the government’s program of market borrowing runs without any hindrance. At the same time, it was decided in the MPC meeting that the Reserve Bank will gradually bring back the cash reserve ratio (CRR, CRR) of banks to 3.5 percent by 27 March 2021.
Inflation in satisfactory range of 4%
Earlier, the RBI governor said that the liberal stance in monetary policy for the financial year 2021-22 has been retained. GDP growth rate is estimated to be 10.5 percent in the next financial year. Inflation has come to a satisfactory range of 4 percent. Significantly, the last three meetings of the MPC did not change the interest rates. Currently, the repo rate is at the lowest level of 4 percent. The reverse repo rate is also 3.35 percent. The Reserve Bank had last revised the policy rates on May 22, 2020. At that time, to boost the demand in the economy due to coronavirus, the Reserve Bank had cut the rates without waiting for the MPC meeting. The Reserve Bank has cut the repo rate by 1.15 percent since February last year. This was the 27th meeting of the six-member Monetary Policy Committee. It has three external members Ashima Goyal, Jayant R Verma and Shashank Bhide.
