{"id":4785,"date":"2022-02-10T12:45:19","date_gmt":"2022-02-10T07:15:19","guid":{"rendered":"https:\/\/yourcareerheights.com\/?p=4785"},"modified":"2022-02-10T17:18:03","modified_gmt":"2022-02-10T11:48:03","slug":"rbi-bi-monthly-monetary-policy-review-february-2022-highlights-and-key-takeaways","status":"publish","type":"post","link":"https:\/\/yourcareerheights.com\/?p=4785","title":{"rendered":"RBI Bi-monthly Monetary Policy Review February 2022 &#8211; Highlights and Key Takeaways"},"content":{"rendered":"<div id=\"pl-4785\"  class=\"panel-layout\" ><div id=\"pg-4785-0\"  class=\"panel-grid panel-no-style\" ><div id=\"pgc-4785-0-0\"  class=\"panel-grid-cell\" ><div id=\"panel-4785-0-0-0\" class=\"so-panel widget widget_sow-editor panel-first-child panel-last-child\" data-index=\"0\" ><div class=\"panel-widget-style panel-widget-style-for-4785-0-0-0\" ><div\n\t\t\t\n\t\t\tclass=\"so-widget-sow-editor so-widget-sow-editor-base\"\n\t\t\t\n\t\t>\n<div class=\"siteorigin-widget-tinymce textwidget\">\n\t<article>\n<div id=\"summary_11644463425448\">\n<h3 class=\"summary\"><a href=\"https:\/\/i0.wp.com\/yourcareerheights.com\/wp-content\/uploads\/2022\/02\/MPC1-Feb-22.jpeg.jpg?ssl=1\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-4787 alignleft\" src=\"https:\/\/i0.wp.com\/yourcareerheights.com\/wp-content\/uploads\/2022\/02\/MPC1-Feb-22.jpeg.jpg?resize=300%2C154&#038;ssl=1\" alt=\"\" width=\"300\" height=\"154\" data-wp-pid=\"4787\" srcset=\"https:\/\/i0.wp.com\/yourcareerheights.com\/wp-content\/uploads\/2022\/02\/MPC1-Feb-22.jpeg.jpg?resize=300%2C154&amp;ssl=1 300w, https:\/\/i0.wp.com\/yourcareerheights.com\/wp-content\/uploads\/2022\/02\/MPC1-Feb-22.jpeg.jpg?w=445&amp;ssl=1 445w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>The six-member Monetary Policy Committee headed by Reserve Bank of India Governor Shaktikanta Das started deliberations on the bi-monthly policy review on Tuesday February 8, 2022. The meeting was originally scheduled to take place on 7-9 February 2022. However, it was rescheduled to 8-10 February after Maharashtra Government declared February 7 a public holiday to mourn the death of legendary singer Bharat Ratna Lata Mangeshkar.<\/h3>\n<h3 style=\"line-height: 21.0pt; background: white; margin: 0in 0in 26.25pt 0in;\"><span style=\"color: #993366;\"><strong><i><span style=\"font-size: 15pt; font-family: Lora;\">The Monetary Policy Committee has kept the benchmark interest rate unchanged at 4 percent and decided to continue with its accommodative stance in the backdrop of elevated level of inflation as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains<\/span><\/i><\/strong><\/span> <span style=\"color: #ffffff;\">within<\/span><span style=\"color: #993366;\"><strong><i><span style=\"font-size: 15pt; font-family: Lora;\"> the target going forward. <\/span><\/i><em>\u00a0It is the <span style=\"text-decoration: underline;\">tenth consecutive time since the rate remains unchanged<\/span>. The central bank had last revised the policy rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting interest rate to a historic low. India is charting a different course of recovery from rest of the world. India poised to grow at fastest pace year-on-year among major economies as per projections by IMF<span style=\"color: #993366;\">. <\/span><\/em><\/strong><em><span style=\"font-size: 13.5pt;\"><strong>Pandemic continues to hold world hostage, says Guv.<\/strong><\/span><\/em><strong><em>This recovery is supported by large scale vaccination &amp; sustained fiscal &amp; monetary support, said RBI Governor in his MPC address.<\/em><\/strong><\/span><\/h3>\n<aside class=\"fl\"><\/aside>\n<h4><strong>Highlights of MPC Meet:\u00a0<\/strong><\/h4>\n<ul>\n<li><strong><em>MPC has decided to keep benchmark repurchase (repo) rate at 4 per cent<\/em><\/strong><\/li>\n<li><strong><em>The reverse repo rate will continue to earn 3.35 per cent interest for banks for their deposits kept with RBI<\/em><\/strong><\/li>\n<li><em><strong>The marginal standing facility (MSF) rate and the Bank Rate at 4.25 per cent.<\/strong><\/em><\/li>\n<li><strong><em>RBI retained its growth projection at 9.2 per cent and inflation at 5.3 per cent for the current financial \u00a0year<\/em><\/strong><\/li>\n<li><strong><em>E RUPI digital voucher cap raised from Rs 10,000 to Rs 1 lakh and multiple-use permitted<\/em><\/strong><\/li>\n<li><strong><em>Retail inflation rose to a five-month high of 5.59 per cent in December from 4.91 per cent in November<\/em><\/strong><\/li>\n<li><strong><em>VRR and VRRR of 14 day tenor \u2013 will operate as main liquidity management tool<\/em><\/strong><\/li>\n<\/ul>\n<h4><span style=\"color: #993366;\"><em><strong>Here are the key takeaways of the\u00a0Reserve Bank of India\u00a0Governor\u00a0Shaktikanta Das'\u00a0speech:<\/strong><\/em><\/span><\/h4>\n<p><span style=\"color: #993366;\"><strong>The MPC has kept both the repo rate and reverse repo rate unchanged at 4 percent and 3.35 percent respectively. MPC panel continued with the\u00a0 \u2018accommodative\u2019 stance in the backdrop of elevated level of inflation.<\/strong><\/span><\/p>\n<p><span style=\"color: #993366;\"><strong>The\u00a0MPC voted unanimously for keeping interest rate unchanged and decided to continue with its accommodative stance as long as necessary to support growth and keep inflation within the target.<\/strong><\/span><\/p>\n<p><span style=\"color: #993366;\"><strong><a style=\"color: #993366;\" href=\"https:\/\/i0.wp.com\/yourcareerheights.com\/wp-content\/uploads\/2022\/02\/MPC2-Feb-22.jpeg.jpg?ssl=1\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-4788 alignright\" src=\"https:\/\/i0.wp.com\/yourcareerheights.com\/wp-content\/uploads\/2022\/02\/MPC2-Feb-22.jpeg.jpg?resize=300%2C145&#038;ssl=1\" alt=\"\" width=\"300\" height=\"145\" data-wp-pid=\"4788\" srcset=\"https:\/\/i0.wp.com\/yourcareerheights.com\/wp-content\/uploads\/2022\/02\/MPC2-Feb-22.jpeg.jpg?resize=300%2C145&amp;ssl=1 300w, https:\/\/i0.wp.com\/yourcareerheights.com\/wp-content\/uploads\/2022\/02\/MPC2-Feb-22.jpeg.jpg?w=624&amp;ssl=1 624w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>The RBI projected GDP growth for FY23 at 7.8 percent. The central bank retained the growth projection for current financial year at 9.2 percent.<\/strong><\/span><\/p>\n<p><span style=\"color: #993366;\"><strong>CPI\u00a0inflation\u00a0forecast for FY22 has been retained at 5.3 percent. It expected to moderate closer to 4.00 percent target in second half of FY23 and provide room for monetary policy to remain accommodative.<\/strong><\/span><\/p>\n<p><span style=\"color: #993366;\"><strong>Retail inflation rose to a five-month high of 5.59 percent in December from 4.91 percent in November, mainly due to an uptick in food prices. MPC has been given the mandate to maintain annual inflation at 4 percent until March 31, 2026, with an upper tolerance of 6 percent and a lower tolerance of 2 percent.<\/strong><\/span><\/p>\n<p><span style=\"color: #993366;\"><strong>There has been some loss of momentum in the economic activity due to Omicron. Considering the outlook for inflation and growth, uncertainty related to global spillovers and Omicron, there's a need for continued policy support is warranted for the economy.<\/strong><\/span><\/p>\n<p><span style=\"color: #993366;\"><strong>Rupee has shown resilience in the face of global spillovers. Current account deficit (CAD) seen below 2 percent of FY22 GDP.RBI is committed to smooth conduct of the government borrowing program<\/strong><\/span><\/p>\n<p><span style=\"color: #993366;\"><strong>The cap of e-vouchers has been proposed to be increased from Rs 10,000 to Rs 1 lakh.<\/strong><\/span><\/p>\n<p><span style=\"color: #993366;\"><strong>Variable rate repo operations of varying tenors will henceforth be conducted as and when warranted. Second, variable rate repos and variable rate reverse repos of 14-day tenors will operate as the main liquidity management tool. Third, these operations will be aided by fine turning operations. Fourth, with effect from March 1, the fixed rate reverse repo and Marginal Standing Facility will only be available from 5:30-11:59PM on all days.<\/strong><\/span><\/p>\n<p><span style=\"color: #993366;\"><strong>Increasing the NACH mandate limit from Rs 1 Cr to Rs 3 Cr for trade related settlement is proposed.<\/strong><\/span><\/p>\n<p><span style=\"color: #993366;\"><strong>On Tap Liquidity window for healthcare is extended upto June 30,2022.<\/strong><\/span><\/p>\n<p><span style=\"color: #993366;\"><strong>Limit for inflows under the Voluntary Retention Scheme hiked to Rs 2.5 lakh cr from Rs 1.5 lakh cr.<\/strong><\/span><\/p>\n<p><span style=\"color: #993366;\"><strong>All members of the MPC \u2013 Dr. Shashanka Bhide, Dr. Ashima Goyal, Prof. Jayanth R. Varma, Dr. Mridul K. Saggar, Dr. Michael Debabrata Patra and Shri Shaktikanta Das \u2013 unanimously voted to keep the policy repo rate unchanged at 4.0 per cent.<\/strong><\/span><\/p>\n<p><span style=\"color: #993366;\"><strong>All members, namely, Dr. Shashanka Bhide, Dr. Ashima Goyal, Dr. Mridul K. Saggar, Dr. Michael Debabrata Patra and Shri Shaktikanta Das, <span style=\"text-decoration: underline;\"><em>except Prof. Jayanth R. Varma<\/em><\/span>, voted to continue with the accommodative stance as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within the target going forward. Prof. Jayanth R. Varma expressed reservations on this part of the resolution.<\/strong><\/span><\/p>\n<p><span style=\"color: #993366;\"><strong>The minutes of the MPC\u2019s meeting will be published on February 24, 2022.<\/strong><\/span><\/p>\n<p><span style=\"color: #993366;\"><strong>The next meeting of the MPC is scheduled during April 6-8, 2022.<\/strong><\/span><\/p>\n<p>Please click here to read the :<a href=\"https:\/\/www.rbi.org.in\/Scripts\/BS_PressReleaseDisplay.aspx?prid=53249\" target=\"_blank\" rel=\"noopener\">Governor\u2019s Statement: February 10, 2022<\/a><\/p>\n<p>Please click here to read the :\u00a0<a href=\"https:\/\/rbi.org.in\/Scripts\/BS_PressReleaseDisplay.aspx?prid=53247\" target=\"_blank\" rel=\"noopener\">Monetary Policy Statement, 2021-22 Resolution of the Monetary Policy Committee (MPC) February 8-10, 2022<\/a><\/p>\n<p>Source: rbi.org.in, Economic Times; Livemint, Money Control, Business Standard<\/p>\n<\/div>\n<\/article>\n<p>&nbsp;<\/p>\n<\/div>\n<\/div><\/div><\/div><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>RBI&#8217;s Monetary Policy Committee (MPC) had began its three-day deliberations on February 8th instead of 7th due to Maharashtra government&#8217;s decision to declare February 7 as a public holiday to mourn the passing of the singing legend Lata Mangeshkar.<br \/>\nThe RBI has decided to continue its accomodative stance and has kept repo rate unchanged at 4 percent and reverse repo rate unchanged at 3.35 percent. The Reserve Bank of India has projected real GDP Growth at 7.8 percent for fiscal year 2022-23.The CPI inflation projection has been retained at 5.3% for FY 2021-22 and 4.5% for FY 2022-23.<\/p>\n","protected":false},"author":1,"featured_media":4563,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[38,339,65,936,323,337,45,338],"tags":[35,624,514,40],"class_list":["post-4785","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","category-crr","category-monetary-policy","category-monetary-policy-committee-mpc","category-mpc","category-policy-rates","category-rbi","category-slr","tag-economy","tag-monetary-policy-review","tag-mpc","tag-rbi"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/yourcareerheights.com\/wp-content\/uploads\/2021\/05\/RBI-Guv.jpg?fit=325%2C200&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/posts\/4785","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4785"}],"version-history":[{"count":4,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/posts\/4785\/revisions"}],"predecessor-version":[{"id":4793,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/posts\/4785\/revisions\/4793"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/media\/4563"}],"wp:attachment":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4785"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4785"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4785"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}