Highlights of RBI Governor Shaktikanta Das' address post MPC meet

Highlights of RBI Governor Shaktikanta Das' address post MPC meet

KEY TAKEAWAYS

* MPC voted to leave repo rate unchanged at 4.00%

* MPC voted to retain accommodative stance

* MPC voted to retain forward guidance on stance

* Taken over 100 measures to address COVID-19 impact on econ

* MPC unanimously maintained status quo on repo rate

* MSF rate left unchanged at 4.25%

* Reverse repo rate left unchanged at 3.35%

* 5 MPC members voted to keep accommodative policy stance

* Haven't been prisoner of any rule book over last 18 months

GROWTH

* Econ recovery gaining traction

* Growth impulses seem to be strengthening

* Recovery of India econ gaining traction

* Econ evolved as per MPC's Aug assessment, outlook

* Jul-Sep high-frequency data suggest activity gained momentum

* Aggregate demand improving, but slack remains

* Contact-intensive sectors are still lagging

* Economic recovery still remains uneven

* Pent-up demand, festival season should boost urban demand

* Recovery in demand gathered pace in Aug-Sep

INFLATION

* Inflation trajectory more favourable than was anticipated

* Jul-Sep CPI inflation lower than anticipated

* Core inflation remains sticky

* See food price pressures staying muted

* Evolving core inflation situation requires close vigil

* Pass-through to output prices restrained due to weak demand

Source : Eureka