Repo rate and other key policy rates remain unchanged: RBI

The Reserve Bank of India (RBI), in its fourth bi-monthly monetary meet held on October 9, 2020, has decided to keep the repo rate unchanged and continues with its accommodative stance. This is the second time in a row the apex bank has kept the key rates unchanged.

The existing key policy rates are as under;

All other terms and conditions of the extant LAF Scheme will remain unchanged.

The highlights of Monetary Policy statement:

1. RBI will  extend the scheme for co-lending to all NBFCs, HFCs,
2. The regulator is ready to undertake further measures as necessary to assure market participants of access to liquidity and easy finance conditions
3.  Foodgrain production set for record highs.
4.  Current inflation hump transient; agriculture outlook looks bright, oil prices to remain range-bound
5. Reserve Bank maintains a comfortable liquidity position; Rs.20,000 crore-OMO auction next week.
6. After NEFT 24×7, RBI makes real-time gross settlement (RTGS) system  for high-value transactions round the clock from December 2020
7.  On-tap TLTRO of Rs.1 lakh crore to be made available till March 2021. It will be linked to the repo rate.
8.  Real GDP to decline by 9.5% with risk towards downward revision.

The meeting of the six-member MPC, earlier slated for September 29 to October 1, was rescheduled as the appointment of independent members was delayed. The MPC must have a quorum of four.The government has appointed M/s. Ashima Goyal, Jayanth R Varma and Shashanka Bhide as members of the MPC. They will be replacing Chetan Ghate, Pami Dua, and Ravindra Dholakia, who were appointed on the panel for four years on September 29, 2016.

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