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RBI maintains status quo on policy rates

RBI

RBI Governor Shaktikanta Das said on October 9 that the country’s economy is likely to contract 9.5 per cent in the current financial year, “with risks tilted to the downside”, while maintaining a status quo on policy rates citing high inflation.

The GDP may break out of the coronavirus-induced contraction and turn positive by the fourth quarter of 2020, Governor Das said.

The Monetary Policy Committee – whose three new external members voted in October 9 policy action – unanimously favoured holding the repo rate at the existing 4 per cent, while retaining an “accommodative” stance – which rules out any hikes for the time being.

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