The Reserve Bank of India Monetary Policy Committee on Friday kept both the repo rate and the reverse repo rate unchanged. The repo rate s...
The Reserve Bank of India Monetary Policy Committee on Friday kept both the repo rate and the reverse repo rate unchanged. The repo rate stayed at 4% and the reverse repo rate at 3.3%.
The repo rate is the rate at which RBI lends to its clients generally against government securities. The reverse repo rate allows banks to deposit funds with the central bank and earn interest on it.
“The deep contraction of quarter one is behind us, the silver lining in visible,” said Reserve Bank of India Governor Shaktikanta Das while announcing the policy decisions of the Monetary Policy Committee. “The mood of the nation has shifted from fear to hope.” Das said the committee unanimously voted to keep rates unchanged, and decided to maintain its accommodative monetary policy stance to support growth amid the coronavirus pandemic.
He said it will be a three-speed recovery with individual sectors showing different trajectories. “Real GDP in 2021 is likely to decline by 9.5% but speedy rebound is anticipated,” he added. The RBI governor said inflation was likely to remain at elevated levels in September, and ease in the third and fourth quarters of current financial year.
Das said India’s GDP growth may turn positive in the fourth quarter. “I...
