The Reserve Bank of India on Friday kept the key lending rate or the repo rate unchanged at 4% and reverse repo rate or its borrowing rate ...
The Reserve Bank of India on Friday kept the key lending rate or the repo rate unchanged at 4% and reverse repo rate or its borrowing rate at 3.35%. This is the seventh consecutive time that the central bank has maintained status quo.
Announcing the decisions of the monetary policy committee, at the end of its three-day bi-monthly meeting, RBI Governor Shaktikanta Das said they will continue the accommodative policy stance as long as necessary to revive growth and to mitigate the impact of Covid-19 on economy.
The repo rate is the rate at which the central bank 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 has cut the repo rate by a total of 115 basis points since March 2020 to support the economy during the coronavirus crisis. In 2019, the central bank had slashed rates by 135 basis points.
Das said the economy was in a better position than what it was during the meeting of the monetary policy committee in June. “As the second wave of the pandemic ebbs...the need of...
