RBI keeps repo rate unchanged at 4%, maintains accommodative stance

The Reserve Bank of India's Monetary Policy Committee (MPC) kept the repo rate unchanged at 4 per cent and maintained an accommodative stance.

The Reserve Bank of India on Wednesday kept key interest rates unchanged and maintained an accommodative stance in the wake of rising Covid-19 cases in the country. The central bank’s Monetary Policy Committee (MPC) kept the repo rate unchanged at 4 per cent, while the reverse repo rate has been maintained at 3.35 per cent. The MPC unanimously voted to keep the key interest rates unchanged. The decision is in line with what economists had predicted earlier. It may be noted that the repo rate is the key interest rate at which RBI lends short-term funds to commercial banks, while the reverse repo is the rate at which RBI borrows from them.