The Reserve Bank of India on Friday kept the repo rate unchanged at 4% and reverse repo rate at 3.35%. Announcing the decisions of the cent...
The Reserve Bank of India on Friday kept the repo rate unchanged at 4% and reverse repo rate at 3.35%. Announcing the decisions of the central bank’s monetary policy committee, at the end of its three-day bi-monthly meeting, RBI Governor Shaktikanta Das said that the decision to maintain status quo on lending rates was taken unanimously by the panel.
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 RBI governor also said that the committee decided to maintain its “accomodative” stance on the monetary policy. He said that the central bank will look to continue with the stance “at least in this fiscal [2020-21] and into the next one [2021-22]”.
The central bank last revised its policy rate on May 22 last year, in an off-policy cycle to perk up demand by cutting interest rates to a historic low. The central bank has cut policy rates by 115 basis points since February 2020.
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