RBI keeps policy rate unchanged for 8th time in a row

Inflation trajectory turning more favourable than anticipated, says RBI Governor

The Monetary Policy Committee (MPC) of the Reserve Bank of India, (RBI), on Friday, October 8, 2021, voted 5:1 to keep the policy repo rate unchanged at 4%.

The decision was taken ‘"to continue with accommodative stance to revive, sustain growth on durable basis," RBI Governor Shaktikanta Das said.

Stating that the RBI took over 100 measures since onset of COVID-19 pandemic, Mr. Das said the inflation trajectory turning more favourable than anticipated. The economic activity too is slowly picking up, he said.

The capacity utilisation in manufacturing sector had recovered in Q2, Mr. Das said adding that further improvements were expected in ensuing quarters.

Core inflation remained sticky Mr. Das said.

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