What are the recent changes in monetary policy?

On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (August 6, 2021) decided to: keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 4.0 per cent.

What is the current fiscal policy of India?

Fiscal deficit for 2020-21 was at 9.3 per cent of the gross domestic product (GDP), lower than 9.5 per cent estimated by the Finance Ministry in the revised Budget estimates, according to the CGA data.

What are the current challenges of Indian monetary policy?

Issues Pertaining to Inflation Targeting Monetary policies can stabilize inflation only caused due to demand shocks and are ineffective against supply shocks. Inflation in emerging markets such as India is very sensitive to exogenous shocks like global oil prices, a weaker rupee and a poor monsoon.

What is monetary and fiscal policy of India?

In India, the Monetary Policy is under the Reserve Bank of India or RBI. Monetary policy majorly deals with money, currency, and interest rates. On the other hand, under the fiscal policy, the government deals with taxation and spending by the Centre.

What is RBI policy today?

RBI Monetary Policy Highlights: MPC keep policy rates unchanged, pegs real GDP growth at 10.5% in FY22. The reverse repo rate also kept unchanged at 3.35 percent. MSF and bank rate remain unchanged at 4.25 percent. .

What is the present policy repo rate?

4 per cent
RBI Monetary Policy 2021: The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) kept the repo rate unchanged at 4 per cent while maintaining an ‘accommodative stance’ as long as necessary to mitigate the impact of the COVID-19 pandemic, RBI Governor Shaktikanta Das announced on Friday.

What is the fiscal deficit of India in 2020?

India recorded a fiscal deficit of 9.3% of GDP in 2020-21, 0.2% lower than the revised estimate of 9.5% of GDP, according to the Controller General of Accounts (CGA).

What is the four balance sheet problem?

In his latest paper named ‘India’s Great Slowdown’, Arvind Subramanian mentions the new ‘Four balance sheet challenge’. The Four Balance Sheet challenge includes the original two sectors – infrastructure companies and banks, plus NBFCs and real estate companies.

What is the effect of Covid 19 on Indian economy?

The Covid-19 pandemic has not affected our fiscal deficit and disinvestment target much. In this year’s union budget, Finance minister Nirmala Sitharaman announced a fiscal deficit target of 6.8% for 2021 to 2022. India’s fiscal deficit for 2020-21 zoomed to 9.5% of GDP as against 3.5% projected earlier.

What is current RBI bank rate?

RBI Monetary Policy Today, RBI Governor Speech Highlights Reserve Bank of India today kept repo rate unchanged at 4 per cent, and maintained accommodative stance. RBI kept reverse repo rate at 3.35 per cent. Marginal Standing Facility Rate & Bank Rate has been fixed at 4.25 per cent.

What is the monetary policy of Reserve Bank of India?

RBI Monetary Policy 2021 – Key Takeaways RBI Monetary Policy 2021 The monetary policy is a policy formulated by the central bank, i.e., RBI (Reserve Bank of India) and relates to the monetary matters of the country. The policy involves measures taken to regulate the supply of money, availability, and cost of credit in the economy.

What is the role of monetary policy in the economy?

The policy involves measures taken to regulate the supply of money, availability, and cost of credit in the economy. The policy also oversees distribution of credit among users as well as the borrowing and lending rates of interest.

What is the current interest rate in India?

The Reserve Bank of India, in its monetary policy meet decided to keep the key policy rates unchanged after two emergency rate cuts amid the COVID-19 disruptions and its ensuing economic fallout. Consequently, the repo rate stands unchanged at 4% and the reverse repo rate at 3.35%.

What was the budget of India in 2021?

The macroeconomic policies implicit in the country’s 2021–22 Union Budget, presented on 1 February, focus on stabilising growth. Government expenditure is estimated to be 17.7 per cent of GDP in 2020–21, a sharp increase from 13.2 per cent in 2019–20 and 12.5 per cent in 2018–19.