RBI April Monetary Policy: The Reserve Bank of India’s Monetary Policy Committee on April 8, 2022, voted to keep the benchmark repo and reverse repo rates unchanged for the straight 11th time in a row. The Governor of the Reserve Bank of India Shakitkanta Das stated in his Monetary Policy Statement that the Committee has voted unanimously to leave the repo rates unchanged at 4 percent. The Monetary Policy Committee has also voted unanimously to keep the stance accommodative.
The repo rate is the rate of interest at which the Reserve Bank of India lends short-term funds to the banks. On the other hand, the reverse repo rate will remain unchanged at 3.35 percent. The Reverse Repo rate is the interest rate at which the RBI borrows from banks.
The RBI Governor further informed that the Marginal Standing Facility (MSF) rate and the Bank rate have remained unchanged at 4.25 percent.
Monetary Policy Committee met on 6th, 7th and 8th April. Based on an assessment of the macro-economic situation and the outlook, MPC voted unanimously to keep the Policy Repo Rate unchanged at 4%: RBI Governor Shaktikanta Das pic.twitter.com/KCEsp4BnMU
— ANI (@ANI)
April 8, 2022
Three different aspects to deal with merging crisis and challenges: RBI Governor
RBI Governor listed the first significant improvement in the external sector, the second will be the Foreign Exchange Reserves which are at very comfortable levels and the third is the substantial strengthening of the financial sector.
I am emphasizing on 3 different aspects which place us in a position that would enable us to deal with the merging crisis and challenges. First, significant improvement in the external sector. Second, Foreign Exchange Reserves which are at very comfortable levels: RBI Governor pic.twitter.com/aphp9PsH1G
— ANI (@ANI)
April 8, 2022
Global economy witnesses tectonic shifts with war in Europe
During the briefing on RBI Monetary Policy 2022, the Governor of the Reserve Bank of India stated that the world is confronted with new and humongous challenges such as shortage in key commodities, fear of de-globalization, and fractures in international financial structure.
Das further added that the global economy is witnessing tectonic shifts with the commencement of the war in Europe, followed by extended sanctions and escalating geopolitical tensions.
While the Coronavirus pandemic morphed into a health crisis, conflict in Europe has the potential to derail the global economy. He added that India’s approach needs to be cautious and proactive.
Caught in the cross-currents of multiple headwinds, our approach needs to be cautious but proactive in mitigating the adverse impact on India’s growth, inflation and financial conditions: RBI Governor Shaktikanta Das pic.twitter.com/VOr3F5DR3u
— ANI (@ANI)
April 8, 2022