The RBI’s Monetary Policy Committee (MPC) decided to keep the repo rate unchanged at 4%, which the lowest in the record. It has so far slashed the policy rate by 115 basis points this year.
Highlights of the Committee Meeting :
- RBI sees a GDP contraction of 7.5% for the Financial Year 2021.
- Recovery in rural demand to be strengthened further.
- MPC decides to maintain the policy rate as long as necessary at least during the current financial year and into the next financial year, to recover growth.
- MPC is of the view that inflation is likely to remain sustained. The rate of inflation is standing at 7.6 per cent in October 2020.
- MPC will monitor closely all threats to price stability to make broader macroeconomic and financial stability.
- 2020 will be recorded as a defining year in modern civilization marked by Covid-19 pandemic, with economic losses exceeding The Great Depression of 1930s, says RBI Governor.