The RBI’s Monetary Policy Committee (MPC) decided to keep the repo rate unchanged at 4%, which the lowest in the record. It has so far slashed the policy rate by 115 basis points this year. 

Highlights of the Committee Meeting :

  1. RBI sees a GDP contraction of 7.5% for the Financial Year 2021.
  2. Recovery in rural demand to be strengthened further.
  3. MPC decides to maintain the policy rate as long as necessary at least during the current financial year and into the next financial year, to recover growth. 
  4. MPC is of the view that inflation is likely to remain sustained. The rate of inflation is standing at 7.6 per cent in October 2020.
  5. MPC will monitor closely all threats to price stability to make broader macroeconomic and financial stability.
  6. 2020 will be recorded as a defining year in modern civilization marked by Covid-19 pandemic, with economic losses exceeding The Great Depression of 1930s, says RBI Governor.

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