RBI announced monetary policy without changing rates. Decided to remain at 4 percent without increasing repo rates in the face of the second wave of Covid 19. The reverse REPO rate will also remain unchanged at 3.35 per cent. This was announced by RBI Governor Shaktikanth Das after a three-day monetary policy meeting.
The growth rate is expected to be 9.5 per cent in the current financial year. Growth was initially expected at 10.5 percent. The RBI Governor also said that necessary steps will be taken for growth. The Rs 16,000 crore project to help small and medium industries will continue. Borrowers up to Rs 50 crore will get the benefit under the scheme. Earlier the lending limit was Rs 25 crore.
Agriculture grew by 3.6 per cent. The services sector was reduced by 8.4 per cent and the industrial sector by 7 percent. Shaktikanta Das said the favourable monsoon would give a boost to agriculture and positive factors globally would favour the country’s economy. RBI reduced rates in March 2020 due to covid spread. Economists hope to get rid of the second wave as many states begin moving the countdown.