Quick Summary
The Monetary Policy Committee (MPC) met on 2nd, 3rd and 4th December, 2020. It reviewed current macroeconomic and financial developments, both domestic and global, and the evolving outlook for the Indian economy. At the end of its deliberations, the MPC voted unanimously to leave the policy repo rat
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FAQ :
The Monetary Policy Committee (MPC) voted unanimously to leave the policy repo rate unchanged at 4 percent.
The MPC decided to continue with the accommodative stance of monetary policy as long as necessary, at least through the current financial year and into the next, to revive growth and mitigate the impact of COVID-19.
The Marginal Standing Facility (MSF) rate and the Bank rate remain unchanged at 4.25 per cent, and the reverse repo rate stands unchanged at 3.35 per cent.
Inflation is likely to remain elevated, though some relief is expected in winter months. Cost-push pressures continue to affect core inflation, which is projected to remain sticky.
Real GDP growth is projected at (-) 7.5 per cent for 2020-21, with specific projections for Q3 and Q4 of the financial year.
The RBI announced measures including enhanced liquidity support to targeted sectors, deepening financial markets, conserving capital among banks and NBFCs, strengthening supervision, facilitating external trade, and upgrading payment system services.
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