RBI Keeps Interest Rates Unchanged At 4%
Mumbai: In a bid to support the nascent economic recovery amid the ferocious second wave of the Covid-19 pandemic, the Reserve Bank of India (RBI) on Friday kept key interest rates unchanged at record lows.
Announcing the second monetary policy of 2021-22 fiscal after a 3-day review meeting, RBI said the repo rate will stay at 4 percent, while the reverse repo rate or the central bank’s borrowing rate will be unchanged at 3.35 percent.
RBI Governor Shaktikanta Das in a statement that based on its assessment the MPC voted unanimously to maintain the status quo that is keeping the policy repo rate unchanged at 4 percent.
Notably, this is the sixth time in a row that the Monetary Policy Committee (MPC) of the RBI has decided to keep the policy rate unchanged.
The repo rate is the interest rate at which the Central Bank lends to banks to meet short-term liquidity requirements. In turn, the repo rate decides interest rates of personal loans, home loans, consumer loans, etc.