The Reserve Bank of India (RBI) announced the August bi-monthly monetary policy on Friday. Unveiling the MPC (monetary policy committee) outcome, RBI Governor Shaktikanta Das kept the repo rate unchanged at 4%, maintaining an accommodative stance. The MPC has also retained the GDP projection for 2021-22 at 9.5% and upped the Consumer Price Index (CPI) inflation for the said period to 5.7% from 5.1%. The statement followed the three-day review meeting of the six-member rate-setting panel of the central bank, headed by Das, which had begun on Wednesday. Headed by the RBI Governor, the six-member MPC also includes three external members.
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10.49 am: RBI extends MSF relaxation period
The central bank has extended the Marginal Standing Facility (MSF) relaxation period, currently available till September 30, 2021, further for a period of three months, i.e., up to December 31, 2021. The RBI has taken the decision to provide comfort to banks regarding their liquidity requirements, comprising meeting their LCR (liquidity coverage ratio) requirement.
10.45 am: Recovery remains uneven across sectors, says Das
"Recovery remains uneven across sectors and needs to be supported by all policymakers. Our focus on the preservation of financial stability continues," says Shaktikanta Das.
10.42 am: RBI MPC Meet: Shaktikanta Das concludes his statement with Mahatma Gandhi quote
"I am an irreplaceable optimist but I always base my optimism on solid facts," said Shaktikanta Das quoting Mahatma Gandhi.
10.39 am: RBI's priority is to nurture growth impulses, we remain optimistic for the economy, says Shaktikanta Das.
10.35 am: RBI MPC Meet update: Central bank intends to provide guidance on derivatives linked to LIBOR.
10.33 am: Centre's decision to dip into cash balances for GST borrowing should alleviate market fears of extra borrowings, says RBI.
10.32 am: On tap TLTRO scheme extended by three months to December 31, 2021.
10.28 am: RBI to conduct two G-SAP auctions worth Rs 25,000 crore on August 12 and August 26.
RBI will step up variable reverse repo rate auctions. This should not be read as reversal of the central bank's accommodative stance: Shaktikanta Das.
10.25 am: Pre-emptive monetary policy response at this stage will kill the nascent economic recovery, says Das.
10.23 am: Inflation likely to remain close to RBI's upper tolerance band until Q2FY22, says Shaktikanta Das.
10.19 am: RBI revises retail inflation projection upwards
RBI ups FY22 Consumer Price Index (CPI) inflation estimate at 5.7% vs 5.1%.
CPI inflation is projected at 5.7 % during 2021-22 - this consists of 5.9% in Q2, 5.3% in Q3 and 5.8% in Q4 of 2021-22 with risks broadly balanced. CPI inflation for the first quarter of 2022-23 is projected at 5.1%: RBI Governor Shaktikanta Das.
10.18 am: RBI MPC meet: Moderation in oil prices will help alleviate CPI, says Shaktikanta Das
10.14 am: RBI MPC Meet outcome: RBI retains GDP projection at 9.5% for 2021-22.
10.13 am: Inflationary pressures cause of concern, says Shaktikanta Das.
10.12 am: Consumer Confidence for 1 year has returned to optimistic, says Das.
10.09 am: RBI MPC meet outcome: Economy recovering from second COVID wave setback.
10.07 am: RBI MPC: Outlook for aggregate demand improving but underlying conditions weak, says Das.
10.04 am: RBI Governor Shaktikanta Das keeps policy rates unchanged at 4%. Maintains accommodative stance.
10.03 am: RBI MPC Meet live updates: Shaktikanta Das begins policy address, may keep key policy rates unchanged.
9.58 am: RBI policy briefing: Governor Shaktikanta Das to annoce MPC decision shortly
9.55 am: RBI MPC meet: Key things to watch out for
9.52 am: RBI MPC Meet: Central bank maintained status quo in June policy review; trimmed FY22 GDP forecast to 9.5%
Shaktikanta Das had kept interest rates unchanged and retained an accommodative stance for the sixth consecutive time during the June MPC meet. Das had announced the MPC's decision after it concluded its three-day meet on June 4. The central bank also trimmed the FY22 GDP forecast to 9.5% from 10.5%.
9.46 am: The MPC has continued with the accommodative policy stance after changing it from neutral in June 2019.
9.41 am: RBI MPC Meet live updates
The central bank had left the benchmark interest rate unchanged at 4% at the June policy meet. It was for the sixth time in a row that the MPC maintained status quo on the interest rates.
9.35 am: RBI may revise inflation projection
The Central is widely expected to revise its inflation projection after the same breached the RBI's upper band limit. Inflation had jumped to 6.3% in May and 6.26% in June.
9.25 am: RBI MPC Meet: Central likely to opt for the status quo on interest rates in view of the inflationary concerns
Experts hold the view that the RBI may adopt a "wait and watch" strategy for some more time before taking any major action on the monetary policy front as its focus is on managing inflation as well as supporting economic growth.