Announcing the bi-monthly monetary policy the Reserve Bank of India Governor Shaktikanta Das on Wednesday said that the monetary policy committee voted unanimously to leave the repo rate and reverse repo rate unchanged at 4 and 3.3.5 percent, respectively. The committee also unanimously decided to continue with the accommodative stance as long as necessary to sustain growth and continue to mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within the target going forward. The marginal standing facility rate and bank rate will remain unchanged at 4.25 per cent, adding that the evolving CPI inflation trajectory is likely to be subjected to both upside and downside pressures.
He further said, the projection of real GDP growth for 2021-22 is retained at 10.5 percent consisting of 26.2 percent in Q1; 8.3 percent in Q2; 5.4 percent in Q3; and 6.2 percent in Q4. He informed that the Government on 31st March this year retained the inflation target at 4 per cent with the lower and upper tolerance levels of 2 per cent and 6 per cent, respectively, for the next five years i.e. from April 2021 to March 2026.
Mr. Das said the RBI has decided to put in place a secondary market G-sec acquisition programme or G-SAP 1.0, to give it a distinct character. Under the programme, the RBI will commit upfront to a specific amount of open market purchases of government securities with a view to enabling a stable and orderly evolution of the yield curve amidst comfortable liquidity conditions. The first purchase of government securities for an aggregate amount of Rs 25,000 crore under G-SAP 1.0 will be conducted on April 15, 2021.