New Delhi (NVI): The Reserve Bank of India’s (RBI) Monetary Policy Committee has decided to keep the repo rate unchanged at 4 per cent, RBI Governor Shaktikanta Das said today.
Addressing a press conference, the RBI Governor announced, “With no change this time as well, the repo rate currently stands at 4 percent. The reverse repo rate has been maintained at 3.35 percent.”
He added that the six-member monetary policy committee met on February 3rd, 4th and 5th and deliberated on current and evolving macroeconomic and financial developments both domestic and global.
Das also stated that the MPC voted unanimously to leave the policy repo rate unchanged at 4 per cent.
“It also unanimously decided to continue with the accommodative stance of monetary policy as long as necessary at least through the current financial year and into the next year, he said.
However, the MPC also maintained an “accommodative stance”, implying rate cuts in the future if the need arises to support the economy hit by the COVID-19 pandemic, the RBI Governor informed.
This is the first Monetary Policy discussed by the RBI Governor after the presentation of Union Budget 2021-22. The RBI had last revised its policy rate on May 22 last year.
Notably, the repo rate is the rate at which the central bank of the country lends funds to the commercial banks and the MPC uses the reverse repo rate as a tool to control the money supply in the country.
Meanwhile, with the support of the recovery in the economic activities in the country, the RBI also estimated a 10.5 per cent GDP growth for the financial year 2021-22, beginning April 1.
-RJV
