RBI Governor Shaktikanta Das in his media brief held earlier today after the first MPC Meeting for this fiscal, which was held from April 6 to 8, reveals that, based on an assessment of the macroeconomic situation, MPC voted unanimously to keep the policy repo rate unchanged at 4% and decided to remain “accommodative” while focusing on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth;
Stating that “…as we were emerging out of the pandemic situation, the global economy has seen tectonic shifts beginning 24th February, with the commencement of the war in Europe, followed by sanctions and escalating geopolitical tensions. We are confronted with new but humungous challenges…”, the Governor assures that the strong buffers that RBI has built over the past few years, including large foreign exchange reserves and substantial strengthening of financial sector, will help us to weather this storm;
Further, Mr. Das announces certain additional measures including – (i) Rationalisation of risk weights for individual housing loans, (ii) Discussion Paper on climate risk and sustainable finance, (iii) Committee for review of Customer Service Standards in RBI Regulated Entities, (iv) Interoperable Card-less Cash Withdrawal at ATMs, (v) Rationalisation of net-worth requirement for Operating Units under Bharat Bill Payment System (‘BBPS’) and (vi) Cyber Resilience and Payment Security Controls of Payment System Operators;
Pointing at the conflict in Europe which poses a new and overwhelming challenge after the 2 turbulent years of pandemic, complicating an already uncertain global outlook, Mr. Das guarantees that “As the daunting headwinds of the geopolitical situation challenge us, the RBI is braced up and prepared to defend the Indian economy with all instruments at its command. As we have demonstrated over the last two years, we are not hostage to any rulebook and no action is off the table when the need of the hour is to safeguard the economy. Our goals of price stability, sustained growth and financial stability are mutually reinforcing and we continue to be guided by this approach.”; In conclusion, stating that “The sky today may be overcast with clouds, but we will use all our energies, resolve and resources to let the sunlight illuminate India’s future.”, the Governor concludes his presser with the words of Mahatma Gandhi “It is faith that steers us through stormy seas, faith that moves mountains and faith that jumps across the ocean.”: RBI
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