RBI Governor Das further said the central bank will seek to gradually move towards achieving the 4% target, but the possibility of a sustained increase in inflation is unlikely.
While speaking at an event, RBI governor said the fine-tuning operations was done so that liquid conditions in the system evolve in a balanced and evenly distributed manner.
MPC external member Jayanth R Varma voted against RBI's accommodative stance and argued for raising money market rates towards repo rate of 4 % from currently 3.35%.
While announcing the third bi-monthly monetary policy review Friday, RBI Governor Shaktikanta Das said reduction on lending rate has reduced the burden on households.
The RBI Governor said that the central bank will soon be coming out with the first financial inclusion index, which will assess progress in terms of access, usage and quality.
The country's foreign exchange reserves rose by $2.865 billion to a record high of $592.894 billion for the week ended 21 May, boosted by gold and currency assets, as per RBI data.
This is the sixth time in a row that Monetary Policy Committee headed by RBI Governor Shaktikanta Das has maintained status quo. RBI had last revised its policy rate in May 2020.
Going forward, the food inflation trajectory will critically depend on the temporal and special progress of southwest monsoon in the 2021 season, RBI Governor Shaktikanta Das said.
RBI Governor Shaktikanta Das says recent surge in infections has lent greater uncertainty to growth outlook, and warns regional lockdowns could dampen recent improvement in demand.
Israel's response to Iran's retaliatory attack was relatively small and also downplayed by Tehran. But there are factors that could jeopardise this perceived reprieve.
The 125 APAs include 86 Unilateral APAs (UAPAs) and 39 Bilateral APAs (BAPAs). The total number of APAs since the start of the APA programme has risen to 641, with 506 UAPAs and 135 BAPAs.
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