RBI monetary policy June 2021: Will RBI offer respite on key interest rates? Here is what is expected

The MPC kept the key benchmark rate unchanged in its last five reviews. RBI had last revised its policy rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting interest rates to a historic low.

New Delhi: The Reserve Bank of India (RBI) is widely expected to keep key interest steady on in its bi-monthly monetary policy on Friday. RBI Governor Saktikanta Das will announce the outcome of the policy at 10 am today. In its last monetary policy, the central bank maintained status quo in its key interest rates. The central bank announcing the outcome of its RBI bi-monthly Monetary Policy rates on April 7 said that it has decided to keep the repo rate unchanged at 4 percent and the reverse repo rate at 3.35 percent. Repo is the rate at which RBI lends funds to commercial banks when needed. It is a tool that the central bank uses to control inflation. The reverse repo rate is the rate at which the RBI borrows from banks.