Reserve Bank of India (RBI) governor Shaktikanta Das announced that the central bank has maintained a status quo on key lending interest rates to continue economic recovery. The repo rate was unchanged at 4 per cent while the reverse repo rate was maintained at 3.35 per cent for the tenth time in a row. RBI has last changed the interests rates in May 2020 to revive the economy from the first wave of Covid-19 outbreak and subsequent lockdowns to prevent the spread.
While announcing the decisions RBI governor has mentioned how Covid-19 pandemic has changed the world in the last two years. “We are living in a world of Knightian uncertainty in the absence of determinate knowledge about the next mutation of Covid-19,” he said.
“The ability to forecast the future course of the economy is so contingent on the evolution of the virus that one prognosis is as good or as bad as the other and as ephemeral,” he added.
But Covid-19 has taught us many lessons, especially how to remain optimistic even during the most crucial moment of the human history. To mention about this never-dying confidence and optimism, Das quoted the legendary singer Lata Mangeshkar. The iconic singer known by the affectionate moniker ‘Nightingale of India’, passed away early on February 6 aged 92. The Bharat Ratna awardee admitted to Mumbai’s Breach Candy hospital in January this year, after she had tested positive for Covid-19 and was also diagnosed with pneumonia.
“As the great Lata Mangeshkar – whom we lost recently – sang in her immortal voice: “aaj phir jeene ki tamanna hai”. Together with the spirit behind the next line of this beautiful song, she has conveyed an eternal message of optimism,” said Das.
“If the last two years of living with the virus have taught us anything, it is to remain humble, but grounded in self-belief, never losing confidence and optimism,” RBI governor further mentioned.
“We, in the Reserve Bank, have remained steadfast in our commitment to safeguard trust and confidence in the domestic financial system as we rebuild the foundations of strong and sustainable growth with macroeconomic stability,” Das added to clarify why the central bank has maintained a status quo in February monetary policy.
Commenting on the RBI policy decisions, Shishir Baijal, chairman and managing director, Knight Frank India, “At this critical juncture when the economy is just recovering from the instability caused by the third wave of pandemic, RBI’s decision to keep the policy interest rate unchanged is a welcome move. There are still lingering growth concerns in the economy and RBI’s accommodative monetary policy stance will be supportive of growth.”
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