RBI announces new credit policy, no change in interest rates

New delhi date. 05 February 2021, Friday

The RBI on Friday reviewed the new credit policy. The central bank has not changed interest rates this time either. After the budget, the middle class is once again in despair. RBI Governor Shashikant Das announced the new credit policy at a press conference.

The RBI has not made any change in interest rates. So the repo rate will still be at 4% and the reverse repo rate at 3.35%. The RBI had projected a 10.5% increase in GDP in the next financial year 2021-22.

The RBI's MPC has refused to make any changes in interest rates at its bi-monthly review meeting. The committee has kept the repo rate at 4%. This was the first meeting of the MPC after the budget was presented. After the meeting, the RBI governor said the committee had unanimously decided not to change the report.

Gradually, home sales have improved, the RBI governor said. At the same time, people's ability to spend is recovering once again. The general budget has just been presented. This is expected to improve the investment climate. "Between January and March, the inflation rate could be 5.2%," Shashikant Das told a press conference.

The RBI Governor has projected a GDP growth of 10.5% in the next financial year 2021-22. He said that the outlook for economic growth has turned positive since the beginning of 2021 and the signs of economic recovery have strengthened. He said the demand of the hour is to strengthen development. Inflation has reached a satisfactory level of 4%.

The meeting of the six-member MPC, headed by RBI Governor Shashikant Das, began on February 3. The decisions of the MPC were announced today after a three-day meeting. The RBI has slashed the repo rate by a total of 1.15% since February last year. But in the last three meetings, the RBI has not made any change in policy rates.