RBI keeps key policy rate unchanged

Mumbai: The Reserve Bank of India today kept its key policy rates unchanged for the sixth consecutive time and at record lows, as it continued with its ‘accommodative stance to revive and sustain growth on sustainable basis’ amid the second wave of the Covid-19 pandemic.

Speaking in Mumbai after MPC’s three-day meeting, RBI Governor Shaktikanta Das said, “The Monetary Policy Committee (MPC) voted to maintain status quo ie repo rate remains unchanged at 4%. MCC also decided to continue with accommodative stance as long as necessary to revive and sustain growth on durable basis and to mitigate impact of Covid on economy.”

He added: “The MPC was of the view that at this juncture policy support from all sides is required to gain the momentum of growth that was evident in the second half of 2021 and to nurture the recovery after it has taken root.”

The apex bank also held the reverse repo rate, the borrowing rate, unchanged at 3.35 per cent, Das added.

It also lowered its estimate for economic growth to 9.5 per cent for the current fiscal from earlier projection of 10.5 per cent due to the impact of the second wave of the coronavirus pandemic.

 

NT Bureau