This is the ninth time in a row that the MPC has maintained the status quo. RBI had last revised its policy repo rate on 22 May 2020 in an off-policy cycle to perk up demand.
RBI Governor Shaktikanta Das says Monetary Policy Committee unanimously decided to continue with accommodative stance to support growth, keep inflation within target.
Barring a second wave, India stands poised to shrug off the deathly grip of the virus and renew its tryst with its pre-Covid growth trajectory, says RBI Governor Das.
RBI's MPC will be overhauled with 3 new external members expected to join by October & possibly changes to its targeting framework introduced next year.
Policies like deficit monetisation, loan restructuring, higher tariffs and import licencing have been brought back to combat the economic fallout of Covid-19.
RBI expects headline inflation to remain elevated in the second quarter of 2020-21. It also sees real GDP shrinking in the first half as well as the full year.
CPI-based inflation has remained over 6% for last 2 quarters. With NPAs also expected to rise significantly, RBI could focus on financial stability this time.
With an educated & skilled workforce, Tamil Nadu has a burgeoning industrial sector which has scored massive investments in automobiles, electronics, and even footwear.
The ‘idea’ Kejriwal's politics grew around was a no-holds-barred fight against corruption. That is the reason Modi govt has now tarred him and his entire party with the same paint.
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