The Reserve Bank of India's Monetary Policy Committee kept the policy repo rate and reverse repo rate unchanged at 4.0% and 3.35% respectively to support ongoing domestic economic recovery from COVID-19. Real GDP expanded by 8.4% in 2021-22, and is projected to grow by 9.5% for the full year. CPI inflation edged up to 4.5% in October but is expected to remain around 5% in the coming quarters. Money supply and bank credit grew by around 9.5% and 7% respectively, while foreign exchange reserves increased by over $58 billion in 2021-22.
2. Monetary policy committee
(MPC) kept Policy repo rate
and reverse repo rate under
the liquidity adjustment
facility (LAF) unchanged
at 4.0 & 3.35% respectively
and Bank rate was fixed at
4.25%.
3. Considering the domestic
economy the real gross
domestic product (GDP)
expanded by 8.4 per cent
year-on-year (y-o-y) in
2021-22 with a growth of 20.1
per cent during quarter 1,
2021-22.
4. It is projected the real GDP
growth will expand by 9.5 per
cent in 2021-22 consisting of
6.6 and 6.0 per cent in Q3 &
Q4 of 2021-22 as well as
it may grow at 17.2 & 7.8%
for Q1 & Q2, 2022-23.
5. CPI inflation edged up to 4.5
per cent in October from
4.3 per cent in September
and it is projected that CPI
Inflation may rise to
5.3 & 5.1% in Q2 & Q3,
2021-22, with risk
broadly balanced.
6. Money supply (M3) and bank
credit by commercial banks
grew y-o-y by 9.5% & 7%
respectively, as on November
19, 2021. Also, India’s foreign
exchange reserves increased
by US$ 58.9 billion in
2021-22 to US$ 635.9
billion.
7. According to the MPC
ongoing domestic recovery
needs sustained policy
support to make it more
broad-based and rates were
unchanged to revive the
growth on a durable basis
and alleviate the impact of
COVID-19 on the
economy