Mumbai, Dec 4 (UNI) The Reserve Bank of India on Friday decided to keep key rates unchanged for the third time in a row, but maintained an accommodative stance, implying more rate cuts in the future if the need arises to support the economy hit by the COVID-19 crisis.
The MPC voted unanimously to hold rates steady in the sixth bi-monthly policy on Friday.
The Repo rate was at 4 pc while Reverse Repo at 3.35 per cent. Marginal standing facility and bank rate remains unchanged at 4.25 per cent. In its preceding policy meet in October, the RBI had kept the key repo rate unchanged in view of heightened retail inflation which has persistently remained above its comfort level.
CPI inflation for Q3 seen at 6.8 pc 5.8 per cent in the third quarter and fourth quarter respectively.
Inflation likely to remain elevated with some relief in the winter months. The inflation spiral is being fueled by supply chain disruptions, excessive margins and indirect taxes.
Announcing the sixth bi-monthly policy, RBI Governor Shaktikanta Das said, the RBI proposes to enhance limits for contactless card payments from Rs 2000 to Rs 5000 from January 2021.
RTGS system will soon be made 24×7 in the next few days, he said, adding that Commercial and co-operative banks will retain profits earned & will not give out dividends for FY21.
Governor Das says real GDP growth for 2021 is projected at -7.5 per cent . With financial stability and depositor interest in mind we have fixed issues at two scheduled commercial banks, he said.
The year 2020 will be recorded as a defining year in modern civilization, marked by COVID19 pandemic, comparable in scale to Spanish Flu, with economic losses exceeding The Great Depression of 1930s, the RBI governor said.