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Repo Rate Unchanged
Why is it in the news?
- The Monetary Policy Committee (MPC) of RBI decided to keep the interest rates unchanged in the wake of a rise in inflation.
- It emphasised that there would be space for rate reduction.
More in the news
- Rates Trend:
(1) This is the second straight policy review meeting where the rates have been kept unchanged.
(2) The RBI reduced the rates by 135 bps between February and October 2019.
- Growth Projection:
(1) The GDP growth for the next financial year is projected at 6%, in the range of 5.5-6% in the first half of the FY21 and and 6.2% in Q3.
(2) The growth projection for the current financial year was 5%.
- Monetary Policy Committee:
(1) The Monetary Policy Committee (MPC) is a committee of the Central Bank in India (Reserve Bank of India), headed by its Governor.
(2) MPC is entrusted with the task of fixing the benchmark policy interest rate (repo rate) to contain inflation within the specified target level.
(3) The MPC replaces the previous arrangement of Technical Advisory Committee.
(4) The Monetary Policy Committee (MPC) is formed under the RBI with six members. Three of the members are from the RBI while the other three members are appointed by the government.
(5) Members from the RBI are the Governor who is the chairman of the MPC, a Deputy Governor and one officer of the RBI.
Source
The Hindu, LiveMint.