RBI’s Monetary Policy Committee Decides To Retain Repo Rate At 4%

Bhubaneswar: The Reserve Bank of India (RBI) has decided to keep the repo rate or short-term lending rate for commercial banks unchanged at 4%.

The Monetary Policy Committee (MPC) of the RBI at its meeting on Friday took the decision on the basis of an assessment of the current and evolving macroeconomic
situation.

The central bank has also kept the reverse repo rate unchanged at 3.35% and the marginal standing facility (MSF) rate and the bank rate at 4.25%.

The MPC also decided to continue with the accommodative stance as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within the target going forward.

These decisions were taken for achieving the medium term target for keeping consumer price index (CPI) inflation of 4% within a band of around 2%, while supporting growth.