RBI keeps policy rate unchanged for 7th time in a row; repo retained at 4 pc
Team Udayavani, Aug 6, 2021, 10:26 AM IST
Mumbai: The Reserve Bank of India (RBI) on Friday decided to keep benchmark interest rate unchanged at 4 per cent but maintained an accommodative stance as the economy is yet to recover from the impact of second COVID wave.
This is the seventh time in a row that the Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das has maintained status quo. RBI had last revised its policy rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting interest rate to a historic low.
MPC decided to maintain status quo, that is keeping benchmark repurchase (repo) rate at 4 per cent, Das said while announcing the bi-monthly monetary policy review.
Consequently, the reverse repo rate will also continue to earn 3.35 per cent for banks for their deposits kept with RBI.
Das said MPC voted unanimously for keeping interest rate unchanged and decided to continue with its accommodative stance as long as necessary to support growth and keep inflation within the target.
MPC has been given the mandate to maintain annual inflation at 4 per cent until March 31, 2026, with an upper tolerance of 6 per cent and a lower tolerance of 2 per cent.
Observing that economy is slowly recovery from brief hiatus, the Governor said, some of the high frequency indicators reflect recovery.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
Never entered into pact to operate airport in Kenya: Adani
None of Adani portfolio cos subject to any legal case: Group CFO on promoter indictment in US
Binny Bansal steps down from board of PhonePe
MSEZ partners with Italy’s MIR Group for Rs 1,500 cr green facility
Sony India bags ACC media rights for eight years
MUST WATCH
Latest Additions
Satwik, Chirag doubles pair bows out of China Masters semifinals
Puttur: Two arrested for misconduct under influence of drugs
Kaup: Massive campaign and awareness rally Nov 26 for Constitution protection
Never entered into pact to operate airport in Kenya: Adani
Women centric schemes game-changer for Maharashtra, Jharkhand?
Thanks for visiting Udayavani
You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.