The Reserve Bank of India (RBI) has said that for the present, no changes will be made in the repo red and reverse repo rates.
RBI Governor Shaktikanta Das said on Friday that after the meeting of the Monetary Policy Committee, RBI has decided to keep the repo rate at 4 per cent and the reverse repo rate at 3.35 per cent.
This is the third time in a row that the RBI has not made any change in the repo rate and reverse repo.
Shaktikanta Das said that the committee believes that due to the bumpy yield of the Kharif crop in the winter months, inflation may be reduced a little. Repo rate is the rate at which the RBI gives loans to commercial banks when needed. This rate is used to control inflation in the country. The reverse repo rate is the rate at which RBI takes loan from banks.
Shaktikanta Das said that the GDP (GDP) of the second quarter of the current financial year 2020-21 has registered a decline of 7.5 per cent. But there are signs of recovery of the economy in the coming times and GDP for the fourth quarter may be 0.7 per cent.
He said that the economy has been affected due to covid-19 but now there are signs of recovery in rural markets and recovery in rural markets will also have an impact in urban markets and demand will increase.
It may be that the increase in corona cases in some parts of the country will have an impact on demand in the coming times, but it cannot be ignored that the recovery rate of corona is now more than 94 percent and the vaccine trials are also expected Is awakened
In such a situation, consumers are excited and it can have a positive effect on the business.
He said that private investment is still not back on track and exports too have not fully normalized.
The growth in the field of Corona vaccine has raised expectations but still it is important to follow the rules of social media and businesses in which employees work close to each other cannot be started at full capacity.
He said that in view of all these factors, it is estimated that GDP (GDP) growth for the third quarter of 2020-21 will be 0.1 per cent while GDP for the fourth quarter may be 0.7 per cent. At the same time, GDP growth will be 7.5 percent for the year 2020-21.