{"id":81338,"date":"2021-02-10T15:09:50","date_gmt":"2021-02-10T09:39:50","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=81338"},"modified":"2021-02-11T10:38:11","modified_gmt":"2021-02-11T05:08:11","slug":"why-rbi-kept-interest-rates-unchanged","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/why-rbi-kept-interest-rates-unchanged\/","title":{"rendered":"Why RBI kept interest rates Unchanged?"},"content":{"rendered":"<p><strong>Source- <a href=\"https:\/\/epaper.thehindu.com\/Home\/ShareArticle?OrgId=GSL88JQA1.1&amp;imageview=0\">The Hindu<\/a><\/strong><\/p>\n<p><strong>Syllabus- GS 2 &#8211;<\/strong> Government policies and interventions for development in various sectors and issues arising out of their design and implementation.<\/p>\n<p><strong>Synopsis-<\/strong> Monetary Policy Committee [MPC] has kept the benchmark interest rates unchanged. It is proceeding with an accommodative stance of monetary policy.<\/p>\n<p><strong>Introduction<\/strong><\/p>\n<ul>\n<li>MPC is keeping the rates unchanged to sustain the present economic growth.<\/li>\n<li>There are many factors that are providing space to MPC for keeping an accommodative stance of monetary policy.<\/li>\n<\/ul>\n<p><strong>What are the factors behind not changing the policy rates?<\/strong><\/p>\n<ul>\n<li><strong>First, <\/strong>retail inflation has been reduced in December, below the RBI&#8217;s upper tolerance threshold of 6%.<\/li>\n<li><strong>Second,<\/strong> while the economy is on the path of revival, it still needs support from every angle.<\/li>\n<li><strong>Third,<\/strong> the COVID-19 vaccine and budget proposal for infrastructure are boosting confidence in the economy.<\/li>\n<\/ul>\n<p><strong>What are the concerns for growth and inflation dynamics?<\/strong><\/p>\n<ul>\n<li><strong>Farmer\u2019s agitation-<\/strong> The agitation involves farmers from key crop-growing States including Punjab, Haryana, and U.P. is a cause for concern. Prolong agitation has the potential to disrupt farm output.<\/li>\n<li>The Centre alone borrow 12-lakh crore at the gross level in\u00a0the coming financial year, the debt manager faces the difficult task.<\/li>\n<\/ul>\n<p><strong>Steps taken by the Central Bank as the government&#8217;s debt manager &#8211; <\/strong><\/p>\n<ul>\n<li>The <strong>enhanced held-to-maturity (HTM) limit<\/strong> for banks was extended till March 31, 2023. The facility would be provided to the banks buying debt issued by the Centre and States.<\/li>\n<li><strong>Allowing retail investors to buy G-Secs<\/strong> [government securities] directly through the Reserve Bank [Retail Direct].<\/li>\n<\/ul>\n<p><strong>Way forward-<\/strong><\/p>\n<ul>\n<li>The vaccine campaign would boost the economic turnaround, the budget proposals and expenditure plans have raised hopes for a more robust recovery.<\/li>\n<li>The RBI needs to keep its focus over inflation as the interest rates are too low. It may boost the consumption in the near future.<\/li>\n<\/ul>\n<table style=\"border-collapse: collapse; width: 57.3353%;\" width=\"340\">\n<tbody>\n<tr style=\"height: 18.75pt;\">\n<td class=\"xl80\" style=\"width: 100%; height: 18.75pt;\" width=\"340\" height=\"25\"><strong><span style=\"color: #ff0000;\">LIST OF RELATED POST<\/span><\/strong><\/td>\n<\/tr>\n<tr style=\"height: 15.0pt;\">\n<td class=\"xl77\" style=\"height: 15pt; width: 100%;\" height=\"20\"><a href=\"https:\/\/forumias.com\/blog\/currency-swap-facility\/\">https:\/\/forumias.com\/blog\/currency-swap-facility\/<\/a><\/td>\n<\/tr>\n<tr style=\"height: 15.0pt;\">\n<td class=\"xl77\" style=\"height: 15pt; width: 100%;\" height=\"20\"><a href=\"https:\/\/forumias.com\/blog\/bad-banks\/\">https:\/\/forumias.com\/blog\/bad-banks\/<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Source- The Hindu Syllabus- GS 2 &#8211; Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Synopsis- Monetary Policy Committee [MPC] has kept the benchmark interest rates unchanged. It is proceeding with an accommodative stance of monetary policy. Introduction MPC is keeping the rates unchanged to&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/why-rbi-kept-interest-rates-unchanged\/\">Continue reading <span class=\"screen-reader-text\">Why RBI kept interest rates Unchanged?<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[1278],"class_list":["post-81338","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-eco_4","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704475539},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/81338","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=81338"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/81338\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=81338"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=81338"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=81338"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}