The Monetary Policy Committee (MPC) unanimously decided to keep the repo rate unchanged, aligning with expectations. Inflation is forecasted to ease further in the coming months, potentially allowing for future rate cuts. The MPC projects real GDP growth of 10.5% for FY22 and inflation of 5-5.2% in the first half of FY22. Key regulatory measures include a two-phase CRR normalization, extension of HTM limits for SLR holdings, deferment of the capital conservation buffer, and permission for retail investment in government securities. Overall, the MPC’s stance supports growth and financial stability.
Ms. Anagha Deodhar – Chief Economist, ICICI Securities on the RBI Monetary policy
.jpg)