- Three-membered Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) maintained an accommodative stance and kept the repo rate unchanged at 4 per cent, in order to revive & sustain growth and reduce the impact of Covid-19 pandemic.
- Monetary Policy Committee has also ensured that inflation remains within the target.
- Reverse repo rate was also kept as earlier at 3.35 per cent.
- Marginal Standing Facility (MSF) rate and bank rate also remain unchanged at 4.25 per cent.
- This was the eighth consecutive time that RBI has maintained a status quo on policy rate. The central bank had last revised its policy rate on May 22, 2020, in an off-policy cycle in order to boost the demand by cutting interest rates.
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Economics
