The Reserve Bank of India on Wednesday kept the repo rate or its key lending rate unchanged at 4% and reverse repo rate or its borrowing r...
The Reserve Bank of India on Wednesday kept the repo rate or its key lending rate unchanged at 4% and reverse repo rate or its borrowing 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 central bank also kept its growth projection for the next financial year unchanged at 10.5%, despite flagging a risk to global demand due to the second wave of coronavirus cases.
Speaking on domestic markets, Das said that while rural demand remained resilient, demand in urban areas was gaining traction and was expected to pick up further. The RBI governor said that the Gross Domestic Product is expected to grow at 22.6% in the first quarter (April-June) of 2021-’22 and at 8.3% in the second quarter (July-September).
As far as inflation is concerned, Das said that while the February retail inflation figure of 5.03% was...
