RBI Governor Shaktikanta Das declared on Thursday that the MPC has decided to keep its accommodative posture while keeping the repo rate, reverse repo rate, bank rate, and marginal standing facility (MSF) rate constant.
The MPC also decided to leave the marginal standing facility (MSF) at 4.25 percent unchanged. In addition, the reverse repo rate was maintained at 3.35 percent.
The MPC chose to retain an accommodative posture with a 5:1 majority to encourage economic growth and recovery.
This is the ninth time in a row that the rate has not changed. The policy rate was last changed by the central bank on May 22, 2020.
The repo rate, reverse repo rate, and MSF rate have all stayed steady.
MPC will maintain its pro-growth position until there are signs of long-term recovery.
Retail inflation has been set at 4.5 percent for FY23, with the RBI maintaining its 5.3 percent inflation forecast for FY22.
For FY23, real GDP growth is expected to be 7.8%.
The major liquidity management instrument will be 14-day tenor variable-rate repo and variable-rate reverse repo auctions.
Fixed-rate reverse repo and MSF operations will be accessible from 5:30 p.m. to 11:59 p.m. on all days beginning March 1.
The limit for e-RUPI prepaid digital vouchers has been raised from $10,000 to $1 lakh per voucher, which can be used several times.
It has been recommended to increase the NACH mandate limit for trade-related settlements from 1 crore to 3 crores.
The healthcare on-tap liquidity window has been extended till June 30.
The Voluntary Retention Scheme’s intake limit has been raised to Rs 2.5 lakh crore from Rs 1.5 lakh crore.
The reverse repo rate is the short-term rate at which the RBI borrows money from banks. The current rate is 3.3 percent. To remove excess liquidity from the system, the RBI borrows money from banks. Analysts expected the RBI to hike the reverse repo rate by 15-40 basis points while planning measures to support the Union Budget, which include increased investment and record market borrowings to boost growth.
The most recent MPC meeting, held in December 2021, left the benchmark interest rate at 4% and chose to keep its accommodative stance despite concerns over the development of the novel coronavirus variant Omicron.
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