The Reserve Bank of India on Friday kept the repo rate unchanged at 4% and the reverse repo rate at 3.35%. This is the third time in a row ...
The Reserve Bank of India on Friday kept the repo rate unchanged at 4% and the reverse repo rate at 3.35%. This is the third time in a row that the central bank kept the key interest rates unchanged.
The repo rate is the rate at which the RBI lends to its clients generally against government securities. The reverse repo rate, on the other hand, allows banks to deposit funds with the central bank and earn interest on it.
The decision was made unanimously by the central bank’s Monetary Policy Committee. “MPC decided to continue with accommodative stands of monetary policy as long as necessary, at least till current financial year and into next year to revive growth on a durable basis and mitigate the impact of coronavirus while ensuring that inflation remains within the target,” RBI Governor Shaktikanta Das said.
The central bank also revised India’s real Gross Domestic Product growth projection for the year 2020-’21 from -9.5% to -7.5%. The RBI had predicted in its October assessment that the economy would contract by 9.5%.
Das said that the recovery in rural demand was likely to become stronger and urban demand was also gaining momentum.
Address by Shri Shaktikanta Das, Governor, Reserve Bank of India https://t.co/obN3wSPGG1
— ReserveBankOfIndia...
