RBI Left the Policy Unchanged
Economic Projections by RBI
The RBI has kept the rates unchanged, considering its goal of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.
Projection for CPI inflation has been revised to 5.2% in Q4: 2020-21, 5.2% to 5.0% in H1:2021-22 and 4.3% in Q3: 2021-22.
Impact on Banks and Economy
This can be considered slightly positive news for banks and the economy, as the RBI didn’t increase the repo rate, with a view to infuse more liquidity in the market.
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