The Reserve Bank of India (RBI) on Friday announced its decision to keep benchmark rates unchanged while retaining its GDP growth forecast for the economy at 9.5 percent for FY22. The central bank however raised its inflation forecast to 5.7 percent from 5.1 percent for the current financial year.
RBI Governor Shaktikanta Das said the MPC voted unanimously to keep the benchmark rates unchanged, and a 5-1 majority supported continuing with the 'accommodative' stance of policy for "as long as necessary" to support growth and keep inflation within the target. Some of the high frequency indicators reflect a recovery, he said.
"The need of the hour is not to drop our guard and to remain vigilant against any possibility of a third wave especially in the background of rising infections in certain parts of the country," said Das in a virtual address to the media.
Here are the highlights from his address:
banks advised that change from LIBOR will not be treated as restructuring