Reserve Bank of India Monetary Policy October 2021
RBI CREDIT POLICY October 2021: Reserve Bank Governor Shaktikanta Das told in a press conference on Friday that the committee has not changed interest rates for the eighth time in a row.
At present, the repo rate is 4 percent and the reverse repo rate is 3.35 percent. This is the eighth consecutive time that the central bank has kept the repo rate unchanged. Along with this, the central bank has also decided to keep its monetary stance soft amid signs of recovery in the economy after the second wave of Kovid-19. Repo rate is the rate at which RBI lends short term to banks and reverse repo rate is the rate at which it borrows from banks.
The Reserve Bank of India (RBI) has not changed the rates and has retained the repo rate at 4%. RBI Governor Shaktikanta Das said that all MPC members are in favor of retaining the rates, hence RBI has retained the rates.
The RBI Governor said that the rise in crude, commodity has affected inflation and the economy is yet to recover completely. At the same time, the inflation rate in Q2 has been lower than expected, while demand has increased rapidly in August-September.
RBI CREDIT POLICY October 2021; GDP growth target remains at 9.5% for FY22- RBI GOVERNOR SHAKTIKANTA DAS:
Now the festive season has started, so the demand is expected to improve further in the festivals. Festivals are likely to have a greater impact on urban demand. There are also signs of revival in investment activities.
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Meanwhile, after the RBI policy in the market, enthusiasm is visible in the market. Sensex crossed 60,000 mark. Bank Nifty is trading at day’s high while Midcap index has reached record high.
After the announcement of Shaktikanta Das, 10 out of 12 stocks of Bank Nifty are seeing a rise. On the other hand, buying is seen in 40 out of 50 stocks of Nifty, while buying is visible in 26 out of 30 stocks of Sensex.