RBI keeps Repo rate unchanged
image for illustrative purpose
Mumbai, Apr 08: Reserve Bank of India has kept the Repo rate unchanged post three-day brainstorming monetary policy committee which concluded here today.
Briefing the media, the RBI governor Sanjay Malhotra said, “Fundamentals of Indian Economy are on stronger footing than previous episodes.”
He further said that upside risks to inflation outlook due to increased energy prices, weather disruptions have increased.
According to Malhotra, “High frequency indicators till February suggest continuation of strong momentum in economic activity.”
He said that West Asia conflict is likely to impede growth.
Government has taken several measures to protect exports, supply chain, should mitigate adverse effects of conflict, he said.
Intensity, he hinted, duration of West Asia conflict and resultant damage to energy infrastructure add risk to inflation, growth outlook, however core inflation remained muted.
Marginal standing facility rate, bank rate stands at 5.5 per cent, he said.
RBI has set Q1 CPI inflation at 4 per cent versus 3.9 per cent earlier. The RBI governor sees Q2 and Q3 CPI inflation at 4.4 per cent and 5.2 per cent respectively.
