RBI Monetary Policy Live Updates: Reserve Bank of India (RBI) maintained the status quo in its bi-monthly Monetary Policy meeting scheduled on October 8. The six-member Monetary Policy Committee (MPC) of India’s central bank kept the key lending rate — repo rate unchanged at 4 percent for the eighth time in a row. The reverse repo rate remained unchanged at 3.5 percent. The policy stance will also be kept unchanged at ‘accommodative’. The MPC voted 5-1 to retain the accommodative stance as long as necessary to sustain growth on a durable basis while ensuring that inflation remains within the target, RBI Governor Shaktikanta Das. RBI retained the FY22 GDP growth forecast at 9.5 percent.

This is the eighth consecutive time the MPC maintaining a status quo in rates. The rate action is on the expected lines as most economists polled by Moneycontrol had predicted a status quo in rates considering the present growth-inflation scenario.

Key highlights from RBI governor Shaktikanta Das’ address:
— RBI will maintain an accommodative stance
— Repo rate, reverse repo rate was maintained at 4% and 3.35% respectively
— RBI Stops G-SAP Operations
It will, however, continue to conduct open market operations as needed.
— RBI has stepped up the pace of variable rate reverse repo auctions.
— The RBI has maintained the FY22 GDP growth forecast at 9.5%.
— CPI inflation is projected at 5.3% for the current fiscal year.

— Internal Ombudsman for NBFCs.

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The RBI has been asked by the central government to ensure that the retail inflation based on the Consumer Price Index remains at 4 percent with a margin of 2 percent on either side. The Reserve Bank had kept the key interest rate unchanged in its after monetary policy review in August citing inflationary concerns. 
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The CPI inflation was at 5.3 percent in August. The inflation data for September is scheduled to be released on October 12.

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Importantly, the RBI sounded optimistic about the growth recovery in the Indian economy. On October 5, rating agency Moody’s hiked India’s sovereign credit rating outlook to stable from negative, citing an improvement in the financial sector and faster-than-expected economic recovery across sectors.