Mumbai: The Reserve Bank of India (RBI) has kept its key short-term lending rates and the growth-oriented accommodative stance unchanged during the second monetary policy review of FY22.
The central bank’s Monetary Policy Committee (MPC) voted to retain the repo rate, or short-term lending rate, at 4 per cent for commercial banks accordingly.
The reverse repo rate was also kept at 3.35 per cent and the marginal standing facility (MSF) rate and the ‘Bank Rate’ at 4.25 per cent.
It was likely that MPC would hold rates and the accommodative stance.
However, with economy slowing down due to the COVID-19 pandemic, the RBI revised India’s FY22 growth estimates to 9.5 per cent from 10.5 per cent.
Furthermore, the central bank pegged retail inflation for FY22 CPI-based inflation at 5.2 per cent.
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